On Thursday, Augme Technologies Inc (OTC:AUGT) dropped down 18% to $1.18 just before the day it was granted two patents.
The stock crash happened on heavy volume which exceeded 1.1 million shares. Compared to the daily average, this represents more than ten times higher trading activity that the daily average.
On Friday, when two press releases were published on the OTC bulletin board, the stock regained part of its value going up 0.92% to $2.20.
However, this was not a hint close to the stock’s former price level. In fact, with this value drop AUGT hit a new 52-week low.
Further technical inspection shows that MACD had recently turned downwards and a bearish cross was formed by the short-term moving averages.
Market speculators will have to bet whether the stock will be able to bounce at the 52-week bottom or well succumb to gravity disregarding the announced patent rewards.
