Primero Mining Corp. (NYSE:PPP) gained 5.93% in trading on July 18, 2017, going up from its prior closing price of $0.34 to $0.36, and has now recorded rally in 6 consecutive sessions. It is uncommon for a stock to keep rising for so many consecutive days so a temporary pullback is likely. The stock price went upward in 6 of the last 10 days and has generated 4.91% during the last two weeks. The upbeat movement of both volume and price during the recent session is interpreted as a good sign, and, overall 0.75 million more shares exchanged hands compared with prior day. In total, 1.35 M shares exchanged hands for about $482 803.
Inside PPP’s Recent Trend
Primero Mining Corp. (PPP) lies the upper part of a very wide and falling trend in the short term, and this will normally pose a very good selling opportunity for the short-term trader as reaction back towards the lower part of the trend can be expected. A break down through the support point at $0.36 will initially suggest a lower tendency for declines in the price and this might very well be an early sign that a trend shift is coming. Short-term traders are anticipated to see a retreat of -38.89% over the course of a quarter and, with 90% chance the price will be floating in the range of $0.15 and $0.22 in this timeframe.
Primero Mining Corp. Technical Signals
PPP has witnessed its long term and short term MA triggering a buy signal but chances are low for long-term averages to cross above short-term averages which the market considers a major buy signal. Upon corrections, the price will meet support from the averages between $0.33 and $0.35. A break down through these support points will trigger sell signals. Its pivot point low generated buy signal on Tuesday July 11, 2017, which calls for additional surge until the stock forms a new pivot point high. Primero Mining Corp has rising volume and follows the last lift in the price. This is considered to be a technical positive sign as volume should follow the price-formation. Higher liquidity also reduces the general risk.
Primero Mining Corp. (NYSE:PPP) Support And Resistance Levels
Primero Mining Corp. (PPP) recorded volume accumulation so there will probably be a surplus of buyers at $0.35, $0.34, and $0.34. In case of gains, the next resistance from accumulated volume will not be far away from today’s level at $0.37, $0.36 and $0.37.
Accumulated volume is going to prevent the price from rising further at $0.37 and this action will lead the price to take a temporary pause or stay muted for a few days.
Primero Mining Corp. (PPP) Risk Assessment
The number of shares changed hands in the stock is good, indicating the interest and low risk associated with it. In the most recent session, the stock price hovered around $0.03 (10.09%) between intraday high and intraday low. Each day in the past 1 week, the average volatility remained at 5.04%.
Since the Primero Mining Corp has been rising for 6 straight session, the volatility is more likely to increase in the next couple of days. We don’t expect a major reaction as the stock is in very good shape technically, and therefore hold a positive evaluation despite the very short term risk.