Yesterday, Argentex Mining Corporation (OTC:AGXM) completed another sequence of its downtrend that started in May. In fact, in the last couple of days AGXM has reached a focal technical point as a result of the prolonged decline of its share value.
Yesterday, AGXM plunged 2% to $0.94 on a volume of 224 thousand shares. The generated volume was roughly two times higher than the daily average of 120 thousand. The short volume, according to FINRA, was 9760 shares, which is only 4% of the total volume.
Thus, AGXM has lost a considerable part of its share price that had previously reached a 52-week high on May 01. Despite this decline, the liquidity of AGXM stock is still much higher than the typical liquidity on the penny stock market. Namely, the 120 thousand daily average volume translates into 112 dollar volume, which is a relatively high value for a penny stock company. This value is important for penny stock investors who want to estimate how easy they can close their positions in the company.[BANNER]
As far as the low shorting volume is concerned, the low value is not surprising because the stock has been declining for a long while and shorters might be more vigilant, especially now when AGXM has reached the 200-MA that may pose some resistance to the declining impetus of the stock.
So, at present, it seems that technical factors exert more influence on the stock performance than the recently issued press releases by the company. Therefore, many investor eyes will be fixed on the stock chart in the coming days.
