Insite Vision Inc. (OTC:INSV) has been dwelling in a harmonic price range ever since it made a major surge in April this year. On Friday, the company once again hit the established resistance at $0.90, but closed slightly lower at $0.86.
In the last three days of the trading week INSV exceeded the average daily volume of 58 million shares and on Friday it reached a volume of 170 thousand shares. Surprisingly, the short volume for the day was only 16 thousand shares, which is not typical for the phase where a stock is close to its resistance, unless the market expects some new course in the stock movement.
Throughout the week, INSV announced several news which might have alleviated the stock along its climb up period. On Thursday, the company announced that it will take part in a joint patent infringement lawsuit against Sandoz. The latter had filed an application with the FDA to market a generic version of AzaSite drug before the expiration of its patents. INSV will have a monitoring role in the case. [BANNER]
For now it seems that non-trending indicators do not suggest that INSV stock will leave the boundaries of the established range. However, the 50-MA has just converged with the support of the stock and from this point on any serious movement of INSV against the line of the 50-MA can signal a new technical phase for the stock.
It seems that, INSV has been driven mostly by technical forces in the last two months. The stock’s volume in the last three days was above the daily average, which may stimulate more traders to turn their eyes to the company. However, technical stimuli might not be enough to change the non trending phase of INSV.
