Yesterday, eMamba International Corp (PINK:EMBA) rose 14% to $0.585 on a volume of 1.2 million shares. Trading activity was much higher than the daily average volume, which is 790 thousand shares. The average daily dollar volume figure exceeds $450 thousand, which is much higher than the typical liquidity on the penny stock market.
On Monday, the company announced it had opened a 70 thousand square-foot North American business and operations center. However, it seems that certain entities used the opportunity to sell their stock on the market. Thus, EMBA fell 15% to $0.44 on a volume of 1 million shares.
EMBA rallied in the following two sessions and now it is again near the resistance at $0.6. If EMBA receives enough support form buyers at this point, it will have a chance to penetrate this level. Otherwise, a consolidation period may follow.
EMBA is a company manufacturing software which provides a complete customer service solution including third party logistics, e-commerce web sales, customer returns management policy etc. EMBA entered into active trading a couple of weeks ago, so there is not enough historical information to help the technical overview of the stock.
Moreover, the company is marked with a limited information sign on the OTC Markets, which adds more risks and pitfalls to the investment process.
