Technest Holdings, Inc. (OTC:TCNH) has been emitting signals for a higher trading activity than usual.
The volume bars have been surging on the chart. Two days ago, for example, roughly 50 thousand shares changed hands during the session, which is ten times higher than the daily average.
However, even with a volume ten times higher than the three-month average, the liquidity of TCNH stock remains very low. In this respect, the dollar volume even on the peak trading day of the week barely exceeded $1,500.
Apparently, certain non-affiliate third parties have not been happy with TCNH’s sluggish volume and have opened their purses for a market awareness campaign of the company.
Thus, last night investors were able to spot a promotional letter dedicated to TCNH and issued by Penny Stock Professor. The disclaimer doesn’t reveal the name of the third party. Still, it became clear that the promoted had been compensated $10,000.
Since TCNH stock has been traded rather irregularly and has a thin trading volume, market speculators cannot rely on signals from technical indicators and chart patterns. In addition, the promotional program can distort the stock’s chart.
Therefore, even though TCNH has made the few investors trading with its stock happy with the doubling of its share price over the last three days, there is no guarantee that the stock will continue to climb further up on the chart.
