USGT Rally Continues, News Out After Close
USGT had another strong day today, trading up to a new high and finishing the week with another record close despite a late afternoon sell-off. Management released an exploration update after the close. This positive new is expected to send USGT sharply higher when trading resumes on Monday.
USGT opened above yesterday's resistance level and quickly headed sharply high on strong volume. Shortly after 1:00 PM Eastern Time, the price had risen more than 13% to $0.849.
Between 2:00 PM and 3:30 PM, the shares were sold off on profit-taking ahead of the holiday weekend. This is perfectly normal, especially during a holiday-shortened week after such a huge rally.
But buyers returned in the last half-hour of trading and the price finished at $0.77, up nearly 3% on the day and up 22.2% for the week!
Aggressive Exploration Property Acquisition Strategy
Management put out a press release stating that USGT is seeking new graphite properties in Nevada in order to make its exploration operations more efficient through economies of scale. By acquiring graphite properties near its own, USGT can use the same teams of geologists, drillers and drilling equipment to explore different graphite deposits.
In addition, USGT has been introduced to a "very high quality" graphite property in Canada that is right next door to a major Canadian graphite producer.
Wayne Yamamoto, CEO of USA Graphite, made it clear that USA Graphite's strategy is to acquire, explore and put into production as many high quality graphite mines as it can, as efficiently as possible to ensure that there is an adequate, secure supply of graphite available to manufacturers in North America.
Daily Chart Completes Fantastic Week
As mentioned above, USGT is up 22.2% this week, despite the sell-off from Friday's intraday high. On the daily chart, USGT is up for the fourth consecutive day. Each trading day this week USGT hit a higher high and a higher low—the classic definition of an uptrend.
Friday's volume was an amazing 3.2 million shares—the highest volume ever traded in USGT—more than the total number of shares traded during the previous three days combined!
The breakout from the wedge pattern that began on Monday is still intact. Of course, it would have been even more spectacular had USGT closed at the high of the day on Friday but the daily chart is very bullish. If you add in the news out from the company, we have a great set-up for the continuation of the rally on Monday. If you recall, the company released a positive exploration update last Friday and that news licked off this week's incredible 22.2% rally.
With fresh news out after the close on Friday, how far will USGT run next week? $1.00? $2.00? More…?
Disclaimer: http://i.imgur.com/ywLmB.jpg
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