SINOBIOPHRMA INC (PINK:SNBP) has gone through a serious crash in the last couple of days.
SNBP has managed to keep a relatively stable share price of around $0.30 until the beginning of July when the first bearish signals started to appear.
Last Friday, the share price of SNBP stock crashed down 36%, delineating a huge red candle on the stock chart. At that time, ASNBP broke the psychological barrier of the high volume penny stocks and reached $0.09 per share.
In the week that followed, SNBP managed to fight its way back up above the $0.1 line. Yesterday, SNBP finished without a price change at the end of the session. However, a considerable surge in the trading volume of the stock was noticed.
More than 1.2 million shares were traded, which is much higher than the daily average. However, there was no officially announced event to explain the increased volume.
Another thing that attracts the intention is the short volume data provided by FINRA after the end of the session. It became apparent that more than 1 million shares of the total traded volume were part of the short volume, which represents 85% of the whole trading activity for the day.
At the end of August, SNBP filed a 15-15D form in order to free the company from the obligation to file reports with the SEC because the company had less than 300 holders of record of its securities as of the beginning of its fiscal year.
It seems that this corporate action has paved the way to the share price slump which followed shortly after that. Now, the main focus of investors will be cast on the $0.1 line where the company will have to show if it has enough power to defend its territory above the high volume area.
