Xinde Technology Co (OTC:WTFS) finally bounced off after it made a heartbreaking plunge a couple of weeks ago. However, it is not very sure how much value the stock will regain, especially when yesterday it became clear WTFS doesn’t have enough power to overcome the short-term moving averages.
In the last trading session, WTFS dropped down 20% on a volume of nearly eight million shares. In fact, the company opened the trading at $0.218, which is above the 9-MA, but shortly after that felt an overwhelming selling pressure which made MTFS retract back to the moving average.
Meanwhile, taking another look at the technical indicators, it is visible that the distance between the 4 and 9-MA is diminishing, which means that many swing traders will be on the look out for a cross between these lines. The same is the situation with the MACD, which is also showing a decreasing histogram. [BANNER]
WTFS on the other hand didn’t watch passively what was happening with its stock. On the contrary, this month it issued two press releases, maybe with the hope to disperse the dark clouds gathered around its stock.
The first press release mentioned that a new performance enhancing design for diesel combustion engines developed by WTFS had been tested with the cooperation of Tianjin University. The second one pointed out that the company was featured in a stock report by Micros Stock Profit.
Apparently, the news had some effect on the market, but most probably it just coincided with the technical bounce off. At least, after the last couple of turbulent weeks, the company has now reached an average daily volume much higher than other stocks below $1. However, it is not clear how this will benefit the company as currently the initiated by the SEC delisting of Chinese companies has made a serious blow on investors’ confidence in there companies.
