In the last two months, My Freightworld Tech (PINK:MYFT) waved goodbye to more than 50% of its shares’ value after it tumbled down from $0.0425 to $0.0199 over the course of this period. This week, MYFT was almost at the border of the sub-penny stock zone, but in the last session a surprising jump in the share price made investors wonder if the stock will manage to withhold its current flank.
On Friday, MYFT surged 7% to $0.0199 on a volume of 157 thousand shares. The trading activity was much lower compared with the average daily volume of 850 thousand shares. This means that the average dollar volume that cycles in one MYFT session is roughly $17 thousand. This means that MYFT stock is highly susceptible to small amounts of investments and that increases the risk for common investors.
Moreover, according to FINRA 70% of the generated volume on Friday was comprised by short transactions.
Since there has been now news or reports form the company this month, investors have no other choice but to rely on technical indicators for guidance in the stock investment process. In this regard, the stock chart puts several points of interest. [BANNER]
While MYFT was moving sideways in the last couple of weeks, it was visible that the MACD indicator had started to climb slightly. The ascension, however, was too weak to incite enough buyers into the trade and thus MYFT tanked below the support at $0.02 in the last four days. Unfortunately, even the last two bullish sessions were unable to bring the stock back above the previous support, so MYFT finished slightly below the $0.02, which is now the new resistance for the stock.
The short-term moving averages have been in a strong bearish mood throughout the whole week, and there are not enough signs for a reversal yet. Apart from that, the trading volume decreased in the last couple of days, which reduces the power of technical symbols to a certain extent.
In general, the devaluation of MYFT can be interpreted by some investors as a suitable chance to enter cheap in the stock, but at the same time the future course of the stock is hardly predictable. The activation of shorters is also a factor that can foil the plans of common investors.
