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Numerous times I have seen the ASK price not increase when an OTC stock reaches that price which kills the upward momentum. Why wouldn't the ASK automatically increase?

  • It depends on the situation - perhaps there are multiple asks at the same price? Perhaps only part of the ASK volume was fulfilled? – D Stanley Apr 4 '18 at 16:47
  • Not really sure what you're asking. If price is increasing, sellers are being taken out by buying pressure. If price stalls, that has stopped. What's the bid/ask as well as the size of the market when the stock reaches the price that you are questioning? – Bob Baerker Apr 4 '18 at 19:47
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The ASK price represents someone willing to sell at a specific price. Although 'momentum' may be a statistical calculation of what could happen, it is ultimately down to whether the seller wants to increase the price he is willing to sell at or not.

OTC stocks tend to be less liquid than regular stocks, and as a result, statistical analysis (such as 'momentum') can begin to falter. You usually need about 30-40 data point to calculate an average. Further derivatives require even more datapoint.

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