Synchronica Plc (CVE:SYN) (PINK:SYHRF) ended Wednesday’s session flat despite the morning gap up in attempt to add something to the 26.7% gain from Tuesday.
The price remains above its 50 day moving average. The trading volume was heavy as well at 2.13 million, which is four times the average of 579 thousand.
This drop in momentum indicates a possible exhaustion of the rally, however, there are other factors in play here as well. The stock has been rallying heavily over the past two sessions adding to the general uptrend which can be seen forming since early December.
The company had little news recently, which also favors bears in the current situation. On December 9 announced to have extended their service agreement with one device manufacturer, which will result in $580 thousand in revenues for 2012.
SYN had no other news since filing the quarterly report by the end of November. The report showed mixed results:
- Booked $6.97 million in revenues;
- Net loss was $9.4 million and resulted from highly increased administrative expenses;
- Most part of the company’s assets remains intangible;
- Had only $2.8 million in working capital;
- Had to rely on sales of capital stock to keep operating.
