On the last trading session, High Plains Gas Inc (OTC:HPGS) dropped down 14.80% to $0.19 per share.
The generated volume throughout the day exceeded 4 million shares, which is roughly four times higher than the daily average.
The short volume data published by FINRA on Wednesday shows that 1.3 million shares were exchanged in short transactions. This means that the relative short activity with HPGS stock was not very high.
Particularly speaking, the short volume generated on Wednesday was 32% of the total generated volume. Since this is a cumulative figure and FINRA doesn’t specify how many of the short positions were opened or closed for the day, the data cannot provide an accurate notion about the influence of the short activity on the stock.
HPGS has bounced down from a resistance established at $0.3 and on the last session the stock finished slightly lower than the support at $0.2. However, HPGS still has the support of the MACD indicator.
On Wednesday, HPGS announced the acquisition of Miller Fabrication, LLC. The purchase of the construction company has been settled for the exchange of cash and common stock, the announcement states.
With regard to the stock compensation, HPGS may suffer a dilutive blow if the compensated shares hit the market at once.
The next action of HPGS will be critical as it will show investors whether HPGS has been on another short correction before continuing the up trend, or a more serious correction is at hand if the support gets breached.
