Yesterday, there was much higher activity with the stock of Dutch Gold Resources, Inc. (PINK:DGRI) than usual. Trading volume reached 14 million shares, or more than double the daily average. However, due to the prevailing selling pressure the stock value dropped down by 11% to $0.0105.
The reason why so many investors were in a hurry to get rid of their DGRI stock is not a clear casual liaison between the market activity and any recent event. The last piece of news from the company came two days ago, when a form 10-K/A was filed to amend the previously filed quarterly report. However, both documents covered 2009 and would have hardly had any effect on the last trade.
Presumably, traders might have been influenced by the technical signals given by the chart of DGRI. In fact, the stock has been lingering in a narrow trading range 
between $0.012 and $0.013. The short-term moving averages formed a bearish cross two weeks ago and are still keeping this stance. The same thing happened with the MACD as well, but the bearish cross here formed later, about the end of last week.
The last 10-Q of DGRI shows that the company is facing a serious working capital problem. The deficit in this section has exceeded $4 million. In addition, the net loss of the company has increased by $200 thousand as compared to the same period last year.
It is visible that a more concrete activity will be need to bring some sensible explanation of the stock performance. Until then, it can be expected that DGRI will continue to test the support and the resistance of its trading channel.
