Mint Technology Corp. (CVE:MIT) (PINK:MITJF) stock price hit a new high during the rally which was most likely driven by short squeezes.
MIT Touched a new multiyear high at 22 cents per share during the bullish morning rush on Tuesday. The stock gained 26.7% under a trading volume of 2.8 million, which was significantly above the average 331 thousand.
The price broke out above the most recent resistance at 16 cents event though the company had no official news.
From an intraday view it can be seen that a very large price spike happened very quickly, which allows to assume that there were short squeezes behind it, and the general interest in this stock is not as it might appear from the first glance. Except for that short quick appreciation the price action in general remained sloppy and lacked liquidity during the session.
From a fundamental standpoint it’s even worse. MIT market cap presently stands at $36.3 million which is huge when compared to the company’s book value of negative $3.5 million
This is why this breakout should not last for long. Depreciation was already seen throughout most of the trading session on Tuesday. The previous resistance at 16 cents could turn into support though, but it will need confirmation and the result would bring yet another consolidation phase which doesn’t promise big returns for anyone.
