Blackwater Midstream Corp. (OTC:BWMS) dropped down 2.33% to $0.42 on a heavy volume on the last trading session.
More that 162 thousand shares were traded during the session, which is 5 times higher than the daily average. In addition, FINRA statistics doesn’t indicate any short volume during the day.
BWMS opened with a gap down at $0.35, but eventually rose up as far as the 50-MA. However, BWMS lacks the strength to penetrate the moving average, which might have discouraged part of the technical traders.
On the other hand, BWMS is being supported by a climbing MACD which crossed the zero line two weeks ago.
At the beginning of the month, the company published its last quarterly report. For the quarter ended September 30, BWMS had registered a net worth of nearly $7 million. However, since most of the company’s assets are in the form of property and equipment, there seems to be a problem with securing enough working capital to cover the short term debt of the company. 
The total working capital deficit of BWMS amounts to $5.9 million. In addition, the company reports a negative net cash flow for the period of $16 thousand. However, the company currently generates nearly $1 million from operating activities, which had almost covered the money spent on payments on bank loans and the purchase of new equipment.
Short-term market speculators will most likely monitor the behavior of the stock at the 50-MA and if the stock makes a major move at this point this will likely provoke more trading with the stock.
