Medical Marijuana Inc. (PINK:MJNA) has apparently entered in another consolidation period after it bounced down from the 50-MA at the end of August.
The support has formed at $0.04, which level has already been tested several times. In the last session, MJNA finished slightly above the support at $0.0405. The stock fell down 55 on a volume of 900 thousand shares.
The trading activity was higher than the daily average which is 570 thousand shares. There has been no news from the company recently, which may suggest that the increased trading activity was caused by traders who monitor the technical set up on the stock’s chart.[BANNER]
Yesterday, MJNA was also a target of a stock website called ino.com. The website issued a trade alert on the company, which stated that MJNA was showing some near term rallying power. However, the website has given MJNA a score of -75, which according to ino’s term means a strong downtrend.
The misgivings about MJNA arise from the fact that MJNA functions in a market which remains in the confines of a longer term downtrend with tight money management stops.
MJNA seems driven by technical factors now as there hasn’t been any significant news recently. Therefore, speculations will most likely revolve around the consolidating period of the stock in the near term.
