Penny Stock Mustang Alliances (MSTG) Pushing For New High

A few weeks ago we profiled the gold exploring penny stock Mustang Alliances, Inc. (OTCBB: MSTG.OB) which has been one of the strongest penny stocks to watch in the last week. MSTG is up 47% since February 27th. Although the stock is just 8 cents from its high, new highs are likely to be eminent. RSI and MACD indicators are showing signs that MSTG could push this hot penny stock much further than their $1.48 all-time high.

Yesterday MSTG announced that it had entered into an agreement to acquire the Bonanza Concession totaling 1,000 hectares in the Choluteca district of Honduras. The acquisition brings 5,400 hectares, or 54 square kilometers under MSTG‘s control in the Southern Honduras area of the Nicaraguan Trough of the Central America Gold Belt.

Beyond this announcement, MSTG collected over 100 surface and near-surface samples, and compiled historical drilling data which includes over 1,800 meters of drilling to depths ranging up to 125 meters. MSTG is currently planning for a 12 to 15 hole drill program for this year. The 2,500 meter drill program will focus on prioritized targets within identified areas of discovery.

MSTG Stock Snap Shot:

Avg Vol (10 day): 988,450
Shares Outstanding: 100.04M
Float: 31.59M
5-Day Moving Average: 1.26
10-Day Moving Average: 1.13
20-Day Moving Average: 1.14

MSTG YTD Stock Chart:

From looking at the chart above, it appears the momentum is building in MSTG even though volume is still below 1M shares traded.

Bottom Line: With the recent plunge in stock price on the hottest penny stock of 2012 thus far, North Springs Resources (OTCBB: NSRS), penny stock traders may not be ready to rush into another “gold exploration” company. However, it does lead to investigating closer so add MSTG to your stock watch list today and take the opportunity to research the company as best is possible.

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