As Opaline stated, there are a lot of holders (stale bulls) who have been in for a while and wore pain as the share price dropped over time. Typically many of these investors bale out when the price recovers around their entry points (a behavioural finance/psychology observation) as they are relieved to get out without a loss or a slight profit after experiencing potentially significant unrealised losses previously. It takes time for this to work through, but usually the volumes are large with an obvious resistance level at which these sellers continue to exit.
Typically these resistance levels are the prices at which they entered, the VWAP over 2006 is approx 11c, and in 2004 it was 12.5c. In 2005 it was 19c.
So, I would guess that it may hang around these levels for some time. If (hopefully) LAF continues its recovery, the next resistance level may be around 19c, the VWAP of 2005.
Just my amateur thoughts. I could be totally wrong.
However, jembsb is also correct about ABN Amro Morgans latest LAF research report that downgraded LAF's valuation on 1 Feb to 10c. However, this was before the green light was given. So, I am not sure whether they would change their view materially given this news.
LAF
lafayette mining limited
