Medinah Minerals, Inc. (OTCMKTS:MDMN) Keeps Tumbling After Spike

The OTC markets can be a turbulent place. After Medinah Minerals, Inc. (OTCMKTS:MDMN) spiked wildly and put on about 150% over seven sessions, the last two trading days saw the price starting to spiral downwards. MDMN has so far lost nearly 30% from its high of $0.10 per share.

MDMN‘s original climb was something of a mystery, coming a few days after a piece of PR released by the company. MDMN announced that it received a ‘written offer’, coming from an unnamed group of ‘well known’ mining experts. The offer was related to the development of the company’s Altos de Lipangue property.

With the rest of the announcement containing mostly fluff, the most significant potential trigger that could have sent the price running is the offer in question. However, at this point, everything is still inconclusive due to the usual NDAs surrounding this sort of thing and no specific information is released to the public. MDMN has until June 9 to decide which way the company will go with the offer.

With a single, relatively obscure PR out and no further big announcements to keep traders excited, MDMN‘s climb was more or less destined to come to an abrupt end. The company posted a shareholder update on its website yesterday, announcing that Mr. Jose Roberto de Romana Letts, a mining executive and expert, was appointed to the board of directors. The news did little to stop MDMN from slipping down the charts. Those fond of looking at the technical indicators of penny stocks will notice that the RSI went above 90 before MDMN started sliding back down.

The company made announcements about offers and joint venture plans in the past and didn’t manage to follow through on them in the way investors expected, going through similar chart spasms in the last few years. Obviously, this sort of information still manages to get traders excited and pushes the price up momentarily. With no new press releases, MDMN may find it impossible to sustain even its current price. The company’s stock is still nearly 100% above its levels before the sudden jump and there’s plenty of room below its current perch.