Bizrocket.com Inc (PINK:BZRT) is yet another stock that can serve as a case study for the effect of promotions. The sinuous curve of the stock that was outlined in the last couple of days was barely a surprise to those who observed the effect that paid advertisements have on penny stocks.
In other words, the promotion of BZRT, which was covered earlier, actually managed to bring a 10% gain on that day. However, the interesting part came later when the stock value crashed severely by the sell-off that followed.
For about two months, BZRT has been maintaining a price channel between $0.2 and $0.3. But, in only four days the stock descended to the high volume border and in the last session for a while it even dipped below it before it closed at the psychological $0.1.
Close to the $0.1 is the 200-MA, which is possible to turn into a resistance level. The most essential movement to observe at present is if BZRT will manage to penetrate below this level. It seems that BZRT was flirting with the line in the last two days, but it still managed to close above it.
The market forces that had brought this havoc into the stock were forceful enough to completely subdue the effect of the last two reports that came from the company, one of which said the company is considering to acquire an email marketing firm.
Anyway, it seems that what concerns investors right now is when the stock will stop the decline and what will signal this change. The answer will come with the coming sessions.
