Technical analysis on ETEKEco-Tek Group, Inc. (OTC: ETEK) is currently a shell waiting for merger. Accumulation has been building for the stock as investors add shares at this sub-penny level in anticipation of a breakout with merger news. The custodian has been busy narrowing down its merger candidates with the intention of finding a suitable merger for the shell. After releasing its quarterly report at the start of April and filling a contract while in negotiation with a potential merger candidate, ETEK stock has been gaining ground with a roughly 38% increase since the start of April.
After increase 55% in April, ETEK stock is currently at $.0028 and shows support at .0023. Meanwhile, ETEK stock shows a main resistance at .0032 as well as a secondary resistance at .0039. With the merger drawing closer, the stock’s accumulation is currently holding after a major upward trend. At the same time, the MACD is bullish but could be approaching a bearish crossover while the RSI holds at 56.
As a favorite one of the favorite sub-penny plays, ETEK stock is the subject of high trading volume – with an average of 54 million. Considering the company’s AS of 6 billion and OS of 5.3 billion, this volume and steady accumulation could be a sign that the stock will surge leading up to the official merger announcement. oar upon announcing the merger. In light of this, ETEK stock could break through its resistance and pass $.004 with more news.
ETEK Stock Forecast
ETEK stock has the potential for a major run up depending on its merger and investor speculation could drive the stock further in anticipation. With a decent share structure and the promise of no reverse splits from its custodian, some investors believe ETEK stock could break a penny with more news from its custodian. Its worth noting that its custodian – Emergent LLC – regularly communicates with shareholders via the company’s Twitter.
