One of the things to keep in mind with regards to microcap stocks is the fact that those stocks can often be quite volatile despite having the potential of delivering significant gains.
On Friday, ILUS stock slid 7.62% to $0.3275 with more than 18.97 million shares, compared to its average volume of 12.07 million shares. The stock has moved within a range of $0.3121 – 0.3740after opening trade at $0.3625.
One of the cases in point is the Ilustrato Pictures International (OTCMKTS:ILUS) stock, which was in the middle of a pretty strong selloff this past Friday and ended up with a decline of as much as 8%. However, despite the fall, it is also necessary to remember that in the past week the stock is up by as much as 18%. However, in this situation, it might be a good idea to consider the reasons behind the rally that took place earlier.
Last Thursday the company had announced that that it was on the verge of acquiring a multinational firefighting equipment firm. It was also noted that the target company in question had revenues of more than $100 million and hence, could be a major part of Ilustrato Pictures International’s plans to get an uplisting to NASDAQ. Hence, the rally in the stock on Thursday was perfectly understandable. It is now going to be interesting to see if the Ilustrato Pictures International stock can actually bounce back today.
ILUS stock is above the 20-Day and 200-Day Moving averages of $0.30 and $0.20 respectively. However, the stock is trading below the 50-Day moving average of $0.36. The stock is down 26% in the past week.