Ever since Cord Blood America Inc. (OTC:CBAI) experienced a significant but short-lived spike in the beginning of May, its stock value has been steadily declining, and now, more than a month later, the price of its shares is even lower than the pre-spike level.
In the last two days, CBAI tested and failed to keep its support at $0.7. Yesterday, after the company succumbed to the overflowing selling pressure, its stock closed at a new 52-week low at $0.145. In fact, the CBAI fell even lower on the intraday chart at $0.125, but finished slightly higher at the closing bell.
The last two trading sessions were very intensive as well, as indicated by the significant volume generated during the two days. Yesterday, over 800 thousand shares were traded, which exceeds the daily average volume nearly six times.[BANNER]
Surprisingly, CBAI hit the new 52-week low after the company announced it had acquired the assets of NeoCells, a subsidiary of ViviCells International Inc. Maybe, what was unattractive to investors in the deal was that NeoCells was acquired through a foreclosure procedure, in which CBAI bid $320 thousand in offset debt.
The reason for the downfall of CBAI stock could have also been some technical indicators. For example, the short-term moving averages made a bearish cross on Jun 09 and have been keeping the bearish stance ever since. In addition, the chart candles have been unable to penetrate above the short-term 9-MA, which could have discouraged many swing and day traders. The situation is the same with the MACD indicator.
In short, CBAI appears to be ruled by an overwhelming selling pressure at present and it is far from certain when it will end. Investors will have to watch for any upcoming updates from the company, as well as any major changes in the technical indicators in order to determine if CBAI is about to exit its bearish period.
