Innovative Composites International Inc. (CVE:IC) (PINK:ICIZF) saw an intriguing increase in trading activity but failed to deliver a promising price action last Friday.
IC had the busiest trading day for the past year – the number of shares that changed hands topped 1.98 million, which is nearly 14 times above the 90 day average of 144 thousand. The price action wasn’t so convincing though – it didn’t leave the range of the current channel, which is directed downwards, and only added mere 4.5%.
This is already a third time when price action goes in a similar manner. The last two took some time to develop but were always pointing down until the news disturbed the pattern. News could break the decline again, but this time there were none, despite the heavy trading volume.
This increase in trading activity could be the result of short squeezes, which are common on Fridays or some buying pressure caused by various funds that are piling up the stock.
Intraday, most of the action took place after 2 PM and it went in a choppy manner, meaning buying pressure didn’t come from multiple sources but was most likely done in large batches by few traders. Even if this continues due to order accumulation over the long weekend, it will most likely just cause morning spike and nothing else when the market opens on Tuesday.
