New America Energy Corp. (OTCMKTS:NECA) gapped up on the open but couldnt hold on.
Market Action
Shares of NECA gapped up 14% on the open but couldn’t hold on. The opening print of .0024 was the high of the day. Trading has ranged between .0017 and .0024. Volume as of 3:00 is 182 million shares, about double its 30-day average. Shares were trading at .0018 down 14% on the day.
NECA Issues News
NECA issued news pre market, which was probably the catalyst for the strong opening. Here are a few highlights.
New America Energy Corp., Signs Letter of Intent to Acquire Family Entertainment Center
NECA today announced the signing of a Letter of Intent to acquire a family entertainment center in South Carolina. The LOI was entered into on May 4th, but the negotiations have been ongoing for several weeks.
The family entertainment center has bowling lanes, full arcade, redemption counter, party rooms, and a full-service bar & restaurant. In addition to acquiring the operations of the FEC, NECA will also be acquiring the physical building and surrounding land as part of the transaction.
Management believes the acquisition will gro NECA’s cash flow.
Traders Notes
NECA has been on a steady decline since it’s high in February of just above .01. Since then, the stock is down about 80%. The stock has found some temporary support at .0016 over the last few weeks. This price acted as resistance back in December 2020 before the big break out.
Potential pivot points to keep an eye on are .00173, .00136 and .00066 below and .0024, .0027 and .0034 above.
NECA is currently trading below all the significant daily moving averages.
For NECA to break out, the stock must close above the .0026 – .0027 area something it has not been able to do in the last two months.
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