This week promises to become one of the most active ones in the trading history of Javalution Coffee Co (PINK:JCOF). With the beginning of the month, JCOF surged significantly in volume to the extent that nearly 9 million shares were turned over on Tuesday, which makes $1.8 million in dollar volume.
The excitement about JCOF can be attributed mostly to the current hype on the coffee market. At present, coffee prices have reached record highs on the futures market due to the bad weather in growing regions, increasing consumption in exporting countries and tight supplies. A report from the International Coffee Organization shows that the ICO composite price has risen to 231.24 in April, which is an all time record high. [BANNER]
The situation in the coffee market inevitably had ramifications in the stock exchange as well. Many coffee stocks experienced an upsurge in the last couple of months. JCOF was also caught in the rising wave of the market.
The day the stock started to rise, a couple of indicators had hinted at a probable upward scenario. However, after the end of the session on Monday, investors had much stronger technical signals at hand.
The same day a bullish MACD cross formed, and the histograms just started to rise. In addition, the 4-day moving average crossed over the 9-day one. This two signals prepared the market for an even more exciting trading on the day that followed. Thus, over the course of the week JCOF had risen by 91% to $0.26.
In the days to come, the focus of those who joined the ride of JCOF might shift towards the issue about how much the company can maintain the current hype. There is a need that the stock surge be justified by the intrinsic value of JCOF, instead by the market situation. The weak point here is that JCOF is a pink sheets company, which means no official documents will be filed to justify the recently announced deals and thus an air of insecurity can form and influence the future of the stock.
