Apparently, after Location Based Technologies Inc (OTC:LBAS) announced its $10 million private placement at the end of July, its stock received a formidable bullish stimulation. Some time after the announcement, LBAS gained a strong momentum that pushed the company’s share price more than 100% up.
LBAS broke the resistance at the beginning of Aug and pushed further up to the $1 border. This psychological barrier was breached last week and LBAS reached a 52-week high at $1.33. However, the sessions that followed marked a correction period for the stock in which LBAS dropped back to $0.91.
We can see that the average daily volume of LBAS, after the recent hectic trading, has reached 1.23 million. In terms of dollar volume, this provides for a much more liquid trading than it is typical for a penny stock. [BANNER]
It must be pointed out that last Friday the company was profiled by a promoter called Microstock Profit. The coverage of LBAS by the promoter, however, had little effect on the market as LBAS stock dropped 7% on a volume of 1.4 million shares the same day. The promoter did not specify whether he had been compensated for the report on the company.
A further look at the technical indicators can reveal that the short-term moving averages and the MACD are at the verge of reversal. However, at this stage there are not enough signals about what will follow after the short-term correction period.
The lack of recent news to keep the trading impulse going and the overall sentiment on the global financial markets may stem the efforts of LBAS stock to surge above the $1 line.
