Opel Solar International Inc (CVE:OPL) (PINK:OPELF) bounced up after the company revealed to have developed the key component for their flagship technology.
OPL stock price shot up 16.8% after bouncing the support around 90 cents. Trading volume was 1.64 million, roughly at the 90-day average, thus the importance of the price move is questionable.
The price rally started as a reaction to the recent news. The company said on June 14, 2011 they have finally developed the key element of the Planar Optoelectronic Technology by successfully fabricating operational transistor devices.
The planar optoelectronic technology allows for creation of integrated circuit gallium arsenide devices with electronic and optical elements on a single wafer. The product can be used for mobile and server applications and should hold lower costs along with increased speed, density and reliability. The company already has most of the necessary patents in place for this unique solution.
During the share price rally, some short sellers were likely squeezed, which allowed for such a large price increase on a seemingly low trading volume. Intraday action shows the whole price jump happened over the course of roughly 15 minutes.
Continuation of such price action is not very likely, but at least it confirmed the support at 90 cents, which can become very significant considering there is currently a strong downtrend in play.
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