Long term bullish, short term bearishMost of us who are invested in PCQ are obviously aware of the risk involved in playing penny stocks. Without the benefit of solid drilling results, this is still very speculative although the upside potential is huge. The technical indicators (MACD, RSI, Stochastic) are bearish right now with the possibility of the price sliding back to the $0.90 and $1.00 which may represent a buying opportunity if support holds.
But one indicator that provides optimism is that volume has been heavy on the gap up days and light to average on down days. The three highest volume days were during the runup from 30 cents to 1 dollar on May 15, 16, 20 (13.37m, 17.38m, 18.94m). It is interesting to note that even on June 2 when the SP hit its 52 week high of $1.82 volume was only 6.23m and half of the shares traded in the first and last hour of the day. The volume was actually higher on the previous day @ 9.06m to a closing of $1.41. So it appears to me that the big players are in this for long haul In the days since June 2, volume has been relatively light with less than 2m shares traded except on June 5th (2.39m). Don't forget that people have been buying in the $1.5-1.8 range and doubtless some of them have sold during the downturn from those highs.
The risk reward is pretty good here IMO.