Location Based Technologies Inc (OTC:LBAS) has not been in the market focus for a while.
The stock has been moving sideways alongside its support at $0.25 since mid November.
There has been no significant break outs recently nor have there been any volume spike.
The company’s 3-month average volume is around 940 thousand which provides for a relatively good liquidity for a penny stock.
The stock seems to have been making lower highs on the chart for the last couple of month which may have made many investors apprehensive of the stock’s ability to maintain its support.
However, at the same time there is a noticeable positive divergence between the stock trend and the MACD indicator. The MACD has been steadily rising since the end of November and has almost reached the zero line.
This in general is considered a bullish sign by market speculators. So, investors will have to have the patience to wait and see which technical set-up will unfold in the coming days – the bearish one or the bullish one.
