Yesterday, 4.5 million shares of Newport Digital Technologies, Inc. (OTC:NPDT) were traded on the open market. The generated volume was higher than the daily average of 1.4 million.
However, the shorting volume was also on the increase. A total of 2.6 million shares were part of the short volume, which makes 58% of the total volume. The increased short activity will definitely be taken into account when investors plan their next steps on the market.
The stock has showed rather volatile trading in the last three months. The stock made a huge spike in May, which was followed by a correction of the same size and now NPDT is again on the up-move.
Given the fact that there are no press releases issued by the company, nor are there any recent reports, it is clear that the stock has been driven mostly by technical factors lately. In fact, the trending indicators such as the MACD and the short term moving averages are in a relative coherence with the price chart. [BANNER]
The short-term moving averages made a bullish cross five days ago and since then NPDT has surged nearly 20%. The MACD made a bullish cross at the same time with the moving averages, which additionally bolstered the upward market sentiment. It is no wonder then that the trading volume surged significantly after this focal technical moment.
Now that the stock has overpowered the 50-MA and has been proudly moving above it, the market might get very sensitive about signs of increasing selling pressure and overall stock exhaustion. It is again up to technical factors to signal any significant developments on the stock chart, unless NPDT comes out with a press release that will influence the stock trade.
