Universal Wing Technologies Inc. (CVE:UAV) (PINK:UNIGF) had a strange spike in price on Wednesday which might attract attention but doesn’t promise anything special for the bullish traders.
UAV gapped up and closed with a nearly 93% premium during the last trading session. The stock had a trading volume of 2.7 million, which was the highest trading activity recorded over the past year.
The price spike looks strange because the company had no news recently. The company kept silent on the news front for more than a year now. On top of that the intraday action shows choppy price movement, which means there weren’t too many different traders involved with the move and most of the action came from large orders.
This move shouldn’t be expected to evolve into something more than a retracement. The price was already on decline for the most part of the trading session and some bulls might take this opportunity to cash out, causing an even faster decline. This is possible because the stock hasn’t been doing much lately and such opportunities became rare.
The financial statements filed roughly half a month ago didn’t show much of a change with the company. Debts grew a bit while assets worth contracted insignificantly, they are still not making money from operations and turn to capital stock sales from time to time, just like an ordinary startup stage business.
