Yesterday, Hear Atlast Holdings Inc (PINK:HRAL) registered a trading volume of nearly 1.2 million shares, which is 10 times higher than the 90-day average. The interesting thing is that 1 million of the traded shares were short trades, or 79% of the generated volume. Meanwhile, the price of HRAL shares jumped 10% to $0.011.
The market sentiment which is delineated by the increased short activity contradicts to the fact that the stock will be under the influence of a market awareness campaign which was announced two days ago. [BANNER]
On May 9, the company said that it retained Phoenix IR Associates to conduct a program that would boost public and shareholder awareness. In fact, no sooner had the news spread out than the first newsletter about the company was distributed to the investors. It came from NYC Marketing after the end of yesterday’s session. The promoter disclosed a total of $20,000 as compensation for the one-day marketing.
It seems therefore that the influence of the promotion will unfold today and if it is strong enough it could have a serious impact on the shorting positions. This is actually an explanation why most of the shorting activity from yesterday appears to be the closing of positions because all of the generated trades yesterday were buys. From a technical point of view, the company has entered a phase where Bollinger bands begin to contract, which may mean that a HRAL has chances to exit its current limits. In a wider time range, it is visible that the stock has changed from a downward trend to a neutral one and the selling pressure is easing for now.
All that being said, it seems that the no information HRAL is poised for interesting trading in the coming days. The stock is not only at a technical threshold, but is also about to be covered by a marketing awareness campaign which can push the stock in any direction with probable corrections coming afterwards.
