Pervasip Corp. (PINK:PVSP) has been cooling out after the hectic climb which led the company out of the new 52-week low it reached in mid-May. After nearly a 1,000% surge the stock is now trading at $0.8 in a trading channel that still resists the gravity power of the sub-penny stock area.
PVSP started to climb after it released the news that NewCapital.com had signed an agreement to purchase all outstanding debt of the company. Stock promotions also had their part in the surge. Since May 16, there has been an incessant stream of newsletters on PVSP.
Surprisingly, this configuration caused such a spike in the stock that hardly anyone had expected. PVSP managed to climb from $0.01 to $0.12 in a matter of a week. Three days ago, the stock started to feel some selling pressure and finished in red numbers.
Yesterday, PVSP stock went down by 5% on a volume of 7.6 million shares. The decline happened even though a new promotion came out to help the company. The promo letter came from 007 Stock Chat, which showed that the promoter was compensated $2,500.
With the chilling out of the stock performance, the trending indicators also showed some signs of exhaustion. This is valid for the MACD and DMI indicators and the short term moving averages. In the last three days, the stock keeps testing the $0.008 line but it is too early to claim this area as the new support level.
The future direction of PVSP stock is not clear for now as it is not certain whether the urge to capitalize on the big price jump will take the upper hand over the chart configuration. The role of the short volume in the stock surge is also vague at the moment.
