Why is the Predictive Discovery (ASX:PDI) share price falling today?

Fortescue Metals share price falls. young boy wearing a hard hat frowning with his hands on his head.

The Predictive Discovery Ltd (ASX: PDI) share price is sliding 11% into the red today and is now trading at 23.5 cents.

The gold explorer’s shares have fallen despite there being no market-sensitive information from the company and after closing yesterday 13% higher at 26 cents.

Let’s take a close look at what might be fuelling this pullback in the Predictive Discovery share price.

What’s up with the Predictive Discovery share price today?

It’s difficult to pinpoint the exact cause of what might be behind today’s downward moves in Predictive’s share price.

However, yesterday the company advised it is set to hold an investor presentation on recent updates at its Bankan gold project in the West African nation of Guinea.

Predictive is riding a wave of momentum at this site of late, including an updated mineral resource estimate (MRE) of 3.65 million ounces for the gold project.

Predictive Discovery managing director Paul Roberts will lead a 30-minute presentation covering the site, its planned exploration activities and plans for technical studies.

Investors appeared to have enjoyed the news with a flurry of buying activity lifting Predictive’s share price yesterday.

However, these gains haven’t rolled over into today and the Predictive Discovery share price has corrected towards its levels of 30 September.

Taking a step back and looking at the wider picture, Predictive Discovery shares were trading relatively flat in the 3 months until 21 September, after which they began to march northwards.

This came after high-grade gold discoveries at its Bankan project that were announced a week earlier. This was followed by positive drill results and another mineral resource update from the site at month’s end.

Despite the update, Predictive’s shares took a backward step before being scooped up by investors at 22 cents apiece on 1 October. They climbed to new 52-week highs yesterday.

Again, the day after yesterday’s announcement, the company’s share price has taken another backward step.

In the absence of any price-sensitive news today, it’s difficult to pinpoint what is causing the selloff in Predictive Discovery’s shares today

Suffice to say, it’s been a fairly bumpy road for Predictive Discovery shareholders the past few days.

Predictive Discovery share price snapshot

The Predictive Discovery share price has delivered outsized returns this year to date and has climbed 268% into the green.

That’s well ahead of the S&P/ASX 200 Index (ASX: XJO)’s return of 25% in the past year.

The post Why is the Predictive Discovery (ASX:PDI) share price falling today? appeared first on The Motley Fool Australia.

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The author Zach Bristow has no positions in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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