NaturalShrimp Inc (OTCMKTS:SHMP) is yet again under pressure after an excellent start to 2019. The stock started the year on a roll, rallying by more than 700% to two-year highs of $0.80. Soaring short selling pressure has since pushed the stock back to a critical support level, waiting to see if bulls have what it takes to continue driving the stock higher.
SHMP Share Price Analysis
A rally to two-year highs came on the company announcing a new patent for a system designed to enable the growing of Gourmet-Grade Shrimp indoors. The stock sentiments inched higher on the company announcing plans to extend the capability of the new system.Investors continued to push the stock up the charts having emerged that the new indoor gourmet growing system avoids major environmental issues. Even as the stock has continued to fall in recent weeks, the company has confirmed the placing of additional equipment order to facilitate shrimp harvest expansion at one of its Gourmet growing facility in Texas. SHMP Daily ChartThe announcement that the company has started shipments of its harvested gourmet to Mardi Gras Event Northern California might as well have averted a further slide of the stock. The stock is currently trading close to the $0.30 mark, a critical support level.Above the critical support level, the stock remains well positioned to continue climbing the ladder in line with the bullish uptrend that began early in the year. A breach of the critical support level, on the other hand, would leave the stock susceptible to further drops.For bulls to regain control from bears, then NaturalShrimp will have to rise and stabilize above the $0.60 mark, a critical resistance level.
What Does NaturalShrimp Do?
NaturalShrimp casts itself as an aquatic company with production facilities located in San Antonio Texas. The company boasts of a proprietary system for growing shrimp in enclosed salt water systems using patented technology.
Recent developments
NaturalShrimp finds itself in a precarious position after a stellar start to the New Year. The stock is in dire need of new catalysts to continue climbing the ladder, especially after a major correction from all-time highs. It appears management is doing all they can to strengthen the stock’s sentiments in the market.After developing and testing it’s indoors Gourmet growing system, NaturalShrimp has started reaping the rewards of its innovation. The company has already shipped about 275 pounds of fresh shrimp from its operations in Northridge Country Club in Fair Oaks California as part of the annual Mardi Gras Celebration.
“We were very happy to supply and sponsor this great event. In attendance was our CFO, several shareholders, and many local business leaders. We will continue to support these types of events with our existing supply of fresh shrimp from our facility in San Antonio, Texas,” said CEO Bill Williams.
The shipment came just days after the company confirmed it had completed testing its patented technology for growing shrimp indoors. According to the CEO, the method worked exceptionally well within acceptable limits.In addition, the company has placed additional equipment in order to facilitate harvesting at its Lacoste Texas facility. NaturalShrimp intends to purchase three additional water treatment systems that will accelerate harvesting expansion at the Texas facility.The new equipment should allow the company to increase operations while providing room for research and development innovation. The equipment also paves the way for NaturalShrimp to expand production capacity all in the effort of meeting the growing consumer demand for indoor grown Gourmet.
“Our initial focus is bringing shrimp to market by replicating our indoor technology in regional production centers outside New York, City, Chicago, and Las Vegas. But it is very important for our investors to know the broad implications of the patent we received,” said Mr. Williams.
Bottom Line
NaturalShrimp has taken a significant hit ever since it rallied to a record high in the market. While the stock is still trading in an uptrend despite the recent implosion, it remains under pressure given the soaring short selling pressure. For investors eyeing opportunities in the stock, the key support levels have held. If taking a long view, SHMP looks to be a discount entry opportunity at current levels.We will be updating our subscribers as soon as we know more. For the latest updates on SHMP, sign up below!Disclosure: We have no position in SHMP and have not been compensated for this article.
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