Silver Falcon Mining Inc. (PinkSheets: SFMI, SFMI message board or SFMI.PK) has attracted some attention as the company's stock price approached a critical level and with news on top of that, we might see a rebound. Currently the price is near the $0.045 support level and though it has followed the October's downtrend pretty closely, this is one level that was not yet breached.
The downtrend was also just a correction after a vast price rally when the previously pink sheet listed company managed to get on the OTCBB. Now that the news faded away support of any more substantial rally is a question of changes in fundamentals or at least outlook.
So can the price bounce off the $0.045 level? There are several factors in play increasing this possibility but this support line actually doesn't seem to hold for a prolonged period. First of all there is news that Silver Falcon has finally established a Diamond Creek Mill office, meaning they will proceed with more managed operations at the site. However with no material side in it the news should not have much effect on the share price.
Another reason for a short term rally is the support of stock markets rebound. But as already stated, this will probably turn out to be just a one or two days rally. Since it hasn't been an officially reporting entity up till now there is no fundamental base upon which the price could make a sustained move.
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