Stock which may have recorded significant declines over a period of one week may often bounce back if there is the right trigger and hence, it may still be a good idea to sometimes take a look into those stocks.
Market Action
On Monday, FWEDF stock ended flat at $0.4795 with 4.6 shares, compared to its average volume of 3.5K shares. The stock has moved within a range of $0.4795 – 0.4795 after opening trade at $0.4835.
Fireweed Announces Increase to Previously Announced Offering to $4.9 Million
One such stock is that of Fireweed Zinc Ltd (OTCMKTS:FWEDF), which has suffered from a significant selloff in the past week and has gone down by as much as 11% during the period. However, at the same time, it needs to be pointed out that yesterday, the company was in the news again after it announced that owing to strong interest from investors, and its financing has been oversubscribed.
In addition to that, Fireweed Zinc also announced that the size of the non-brokered private placement had also been boosted and now the total gross proceeds from the same is going to be as much as $4.9 million. The company noted that after the size of the placement was raised, it would offer a total of 6,125,000 flow through shares which are going to be priced at C$0.80 each. The news about heightened investors interest in the placement is a positive development for the company and it remains to be seen if it eventually leads to a recovery in the Fireweed stock.
Traders Note
FWEDF stock is trading below the 10-Day and 20-Day Moving averages of $0.5213 and $0.5595. Moreover, the stock is trading is the oversold zone with RSI stands at 25.
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