What was once a cute story below $0.10 has been blown out of proportion as shares of GeoBio Energy, Inc. (OTC: GBOED) peaked over $1.00 in trading on Thursday.
Shares have continued to climb while volume has been receding. As every 9th-grader knows, this is a bad sign.
As of the 2:30PM EST mark on Thursday, December the 9th, less than 800,000 shares have traded hands. The correlation, or relationship, between price and volume is negative and moderately strong.
Chartists call this condition ‘negative divergence’. It means that the volume is not supporting the growth in share price.
Last evening we wrote about GeoBio Energy, Inc. (OTC: GBOED), comparing it to a house of cards about to crumble. And not a minute too soon.
As interest dies off (which is already occurring as evidenced by the decreasing trend in trading volume) affluent traders will forget all about “that reverse-split garbage I once traded”.
But the memory will continue to haunt those who do not take heed and protect their hard-earned investment dollars today.
If you are someone who is new to the game, you will more than likely thank us later.