Yesterday, AlumiFuel Power Corporation (OTC:AFPW) surged 13% on only 21 thousand shares. Just for comparison, the 90-day average volume of the company’s stock is 750 thousand.
The situation would not be so peculiar had it not been the stock promotion of the company which took place before the opening of the trading day.
The promotion came from OTC Advisors at around 10:30 a.am EST. As it is visible by the statistics for the last trade, the promotion had no effect on the market in terms of generated volume.
OTC Advisors is a promoter who still doesn’t have any statistics in the Hotstocked data base due to the fact that this is his second promotion for the year.
As to the compensation of the campaign, it became clear that IPRC had directly paid $5,000 thousand to the promoter for the service.
Since the promotion wasn’t able to increase the trading activity of the stock, it seems that IPRC had stepped in a consolidation phase in a channel defined between $0.002 and $0.003.
At the same time, the MACD indicator has turned up slightly, making a positive divergence with the stock’s consolidation.
That being said, AFPW seems to be torn between two forces. The first one coming from the positive MACD divergence and the second one coming from the stock’s apparent inability to generate more volume.
Thus, investors will have to measure for themselves which factor is stronger in this case so as to make a safer decision about IPRC.
