Last Friday, the Novation Holdings Inc (OTCMKTS:NOVC) stock corrected sharply following a selloff and went down by as much as 9%. While the decline in the stock may have been sharp, it is also necessary for investors to keep in mind that the stock is still up by as much as 19% over the course of the past week.
On Friday, NOVC stock slid 8.67% to $0.0548 with 202k shares traded, compared to its average volume of 113K shares. The stock has moved within a range of $0.0500 – 0.0550 after opening trade at $0.0550.
In this context, it is important to point out that there was no news about the company in the past week and in this situation it might be useful for investors to take a look at the events from November 22, 2021.
At the time the company made an announcement with regards to the letter of intent that it had signed that could see Novation potentially acquiring the company Legends of Hemp Inc. The Wisconsin based company is engaged in CBD manufacturing and also branding and could well prove to be a major addition to the portfolio of companies owned by Novation.
In addition to that, Novation could also end up completing the acquisition of the company GMRTV. It now remains to be seen if the Novation stock could bounce back this week.
NOVC stock is trading above the 10-Day and 20-Day Moving averages of $0.0471 and $0.0452. Moreover, the stock is trading is the neutral zone with RSI stands at 60.