Two weeks after the extensive promotion of Alliqua Inc (OTC:ALQA), the natural market forces are trying to restore the artificially distorted balance. The result is a major correction that has been taking place in the last couple of days.
The promotion at the end of April managed to push ALQA to a new 52-week high at $0.30 and as a result the company reached a market value of nearly $62 million. Apparently, this was not a justifiable estimation in the eyes of investors and soon after the end of the campaign a relentless correction pushed ALQA down from the high peak it had climbed.
The fall was painful for the investors who entered too late, as the company has fallen 50% since the 52-peak was reached. Even without a market awareness campaign at hand, the generated volume remained higher than the 90-day average even during the decline. For the period of decline, the short volume remained below 30% most of the time.
From a technical point of view, the $0.15 level has formed a rather interesting point at the moment. The 200-MA and the 88.6% Fibonachi level both meet there, which makes it probable that the new support forms there.
On the whole, investors witnessed the relentless balancing forces of the market, which couldn’t be overcome even by the two announcements which came from the company in the post promotion period. However, the speculations about ALQA do not seem to have reached an end here. The whole scenario about ALQA managed to generate considerable volume which, if retained, can prepare the ground for a more intensive collisions between current and future ALQA investors.
