Yesterday, Kunekt Corporation (PINK:KNKT) rejoiced at a significant stock price surge. The company achieved this stock appreciation on a volume ten times higher than the daily average.
In fact, what made KNKT stock rush upwards yesterday was a published press release. It was submitted on PRNewswire via Comtex. The announcement proclaimed that KNKT had entered into an agreement with several Chinese companies.
Specifically speaking, the announced deal included a trademark license agreement, assets purchase agreement and share exchange agreement. The most important deal pertains to be the asset purchase agreement between KNKT and Ya Zhu. According to the deal, YaZhu will purchase KNKT by issuing 22.48 million shares of YaZhu common stock.
Apparently, all of the announced deals were welcomed by the market, which was visible by the volume and price surge in the last trading session session.[BANNER]
Now that KNKT has attracted more market activity, it is worth glancing at the technical configuration of KNKT stock chart. There, those who follow technical indicators can see that a bullish cross has just been formed by the moving averages. But the most important thing is the apparent positive divergence between the stock trend and the trend of the MACD.
Apparently, the news came at a perfect technical time and acted as the needed catalyst for the company’s stock. However, it is impossible to say what turn KNKT stock will take after the Chinese acquisition. For, it is not a public secret that Chinese companies listed on the US exchanges have been losing investor confidence due to financial fraud issues.
