Monday, April 01, 2013

Multico A Big Disappointment

Multico actually did well fundamentally as shown in my previous post. I had hope for a good performance today, but it did dismally. Although volume was high, the stock ended at 1.55 which is 5 sen below last Friday's close. The pattern of the chart has turned bearish with the formation of a Bearish Engulfing.

Is the stock price of Multico under manipulation? We have heard of "pump and dump." The exact opposite of this is "depress and collect."

Multico is a small-cap stock. Normally, only a small volume is traded in a trading day. Because of this, the stock can be easily pushed north or south as desired by the manipulators. Going by the chart, support should come in at 1.53, and if this is breached, the next support will be 1.46.