After PGI Energy Inc (PINK:PGIE) went through a heated climbing session two weeks ago and peaked at $0.008, it seems that market participants have finally decided to cash in their gain. As a result a sharp correction took place in the last three trading sessions.
The stock price dropped from $0.008 to $0.0031 in three days. In the last session, the traded volume hit 113 million shares, which is four times higher than the daily average. The short volume for that day remained lower that 50% of the total trade. Only 45 million shares were listed in the short volume by FINRA for Friday.
After the precipitous drop, PGIE stopped at one of its previous support levels at $0.003. However, it is beyond reckoning whether the stock will bounce at this level, or continue to fall down to its previous bottom. [BANNER]
During the week of the free fall no press releases or newsletters on the company appeared, thus PGIE didn’t have any counter points to use against the profit taking spree.
Trending indicators such as the MACD and the short-term MA have shown a reversal in their bullish formation. In addition, in the last session PGIE broke below the 50-MA, which is a sign that sellers have taken a total control over the stock for now.
The following days will show whether PGIE will manage to withhold the current support at $0.003, or lose this ground as well.
