September 13, 2011 (Chinavestor) Shares of Silvercorp Metals (NYSE:SVM) fell 16.9% an hour before the end of the trading day on Tuesday. While the fall itself is not all that dramatic, the current situation may be.
The stock looks very weak from a technical point of view. Current stock price of $6.53 is not only a 52 week low but is below 10-DMA, 50-DMA and 200-DMA. This implies that short and longer term technical reading are negative for Silvercorp Metals (NYSE:SVM).
Money flows, another indicator some take very seriously, is HUGELY negative. The stock is down 16.9% with volume of 30 million shares, well above average of 6 million! This suggests the stock is losing critical support! The stock is also not oversold yet - although we'll run the oversold monitor at the end of the trading day and will update the investment community on that.
Overall it is obvious that the stock has lost critical support and is expected to continue to fall apart. Sorry Silvercorp Metals (NYSE:SVM).