Mira Resources Corp (CVE:MRP) (PINK:MIRXF) stock price approached an upper limit of its trading channel and might soon bounce down.

MRP added another 5.4% on Wednesday, adding to the preceding rally. The stock also picked up trading volume. 2.2 million shares changed hands during the session, which was more than 2 times heavier than the average of 949 thousand.

Apparently, Mira's stock price currently sticks to following the technical guidelines as there was no important news lately. This is good news since MRP price channel is defined clearly.

The strong trading volume complimenting the latest bullish price action could push the price to spike above the closest resistance, but the profit taking that's been seen towards the end of the last session suggests this spike was not as bullish as it might appear.

MRP has been going up for the week since it bounced 25 cents per share. The bulls should already be getting cautious as the price approaches a psychologically important 30 cents per share and could bounce back down. Some minor support can be found at 29 cents per share and it could serve as an early indicator on the traders sentiment for the coming trading session depending on whether it will get challenged.

Mira Resources Corp (CVE:MRP) (PINK:MIRXF) stock price had a spectacular run after the company announced to have more resources than thought on their only project in Nigeria.  

MRP stock is sticking to its price gain which was induced by news on Wednesday, but the trading volume has dropped, showing the progression is approaching its end. MRP gained 4.5% on Thursday and stayed securely above two important support zones at 30 and 28 cents per share.

On Wednesday, November 16, the company stated to have acquired new modern cased-hole logs in Tom Shot Bank 1 well. This will allow for immediate production testing of the most promising zone in Tom Shot Bank Field.

The re-evaluation of the new logs also suggest that the U7 and U9 reservoirs are substantially thicker than previously thought, which has become the main cause for the aggressive share price jump.

Since the stock already added nearly 33% to its value, it is safe to assume the increase in Mira's potential was adequately accounted for by market participants. The spinning top candle with long shadows formed on Thursday suggests struggle between bears and bulls, partly arising from profit taking but showing the instability of this rally, nonetheless.

Recently, traders had gotten very excited over Mira Resources Corp (CVE:MRP) (PINK:MIRXF), but the enthusiasm is clearly settling down and the progress made in state of commotion remains questionable.

MRP share price stayed flat during yesterday's trading session as traders eliminated positions from previous day's run. The trading volume topped 2 million on Tuesday as the price gaped up and formed a doji candle for the day, but it didn't lead to anything special.

There is a substantial support at 35 cents per share if the price was to go lower from here. On other hand if it sticks to the short term appreciation, it would have to deal with resistance at 45 cents, providing swing traders a neat setup.

The stock is not influenced by any hot news at the moment.

The latest uptrend in price initially started around the time the company published their interim financial results and later follower-up by raising another $3.42 million through warrant exercise incentive program.

Before the warrants were exercised the company reported to have $13.2 million working capital so that adds up as another positive development. On the other hand Mira also reported a dilution rate to reach 53% over the past year and it was further increased by warrants exercise, upsetting the existing shareholders.

The last thing to look at is the market cap which is currently close to $50 million. That means there is not much space for the stock to break out. The company has no revenues, thus limiting the possible market value.