On Friday, Legend Oil and Gas Ltd (OTC:LOGL) rallied after it took a deep plunge three days ago.
On its way down the stock broke two support lines, putting long investors into panic, which apparently was the reason why the trading volume was on the rise with sellers prevailing during this period.
On Thursday, LOGL was almost about to hit a new 52-week low but eventually finished at $0.65, which is higher than the stock’s nadir from November 2011. On that day, the volume reached nearly 1.2 million shares, which is three times higher than the daily average.
The next day LOGL bounced off and rallied 18.46% back up to $0.77. The trading volume was lower than the previous hectic session and almost matched the three-month daily average.
According to FINRA statistics, 119 thousand shares out of the total 407 thousand exchanged on Friday were traded short. This is more or less 30% of the volume generated on Friday.
The recent volatile swing of LOGL stock seems rather speculative given that no specific news or reports have been issued recently to affect the stock in such a strong way.
The speculative air around LOGL gets even more intricate when investors start asking themselves whether another 52-week low is really possible.
In fact, in the realm of penny stocks everything is possible so those interested in the speculative opportunities offered by LOGL may be better off staying vigilant at this important technical point.
And as it is visible on the chart, the MACD indicator has just made a bearish cross which may affect the expectations of those who trade with LOGL stock.
