After three weeks of accumulation, ZAP (OTC:ZAAP) pushed up from the bottom and thus investors could witness three consecutive sessions decorated in green.
In the last trading session ZAAP broke the resistance line and pushed up 135, finishing at $0.52 per share. Probably, excited by the break out, more investors entered the trade, which resulted in a significantly increased trading volume.
The number of traded shares reached 600 thousand, which compared to the daily average of only 80 thousand is a seven fold increase. The short volume was noticeably lower as only 132 thousand shares were part of the short transactions during the day.
ZAAP hasn’t issued any news or reports lately, so the most probable reason for the surge was the technical configuration. Apart from the obvious bottom bounce play, ZAAP was also supported by other trending indicators. [BANNER]
The short-term moving averages formed a bullish cross on Monday, while the MACD has been in bullish for three weeks now. However, no one knows how long the appreciation of ZAAP stock will continue because it is visible that the stock has just suffered a tremendous loss of value.
In fact the stock has been constantly declining since the start of the year when ZAAP shares were traded at $1.80. Now, after a long and painful downfall the share price has melted down to $0.52.
So, it is not sure if the forces which had drawn ZAAP so far down the chart have already been overcome. Therefore, investors must be extra careful with their excitement about the resent price surge.
