Clinical stage patented technologies developing company RenovaCare Inc (OTCMKTS:RCAR) saw its stock go through a tough time on Tuesday as it ended the day with a decline of as much as 5%. In this situation, it may be worthwhile for investors to figure out if the stock could actually make a recovery any time soon.
Market Action
On Tuesday, RCAR stock slid 5% to $0.19 with 26K shares, compared to its average volume of 7.5K shares. The stock moved within a range of $0.1700 – 0.2299 after opening trade at $0.2299.
RenovaCare Announces Termination of StemCell Systems R&D Agreement
The company announced yesterday that the Strategic Research and Development Agreement that it had signed with the company StemCell Systems GmBH back on July 2020 had been terminated. It was a major announcement from RenovaCare and it seems that the news did not get the thumbs up from investors.
In addition to that, the termination of the agreement also led to the shutdown of the RenovaCare Research and Development Innovation Center located in Berlin in Germany. The immediate effect of the termination of the agreement is the closure of two products into which research had been ongoing.
That being said, it was also noted that RenovaCare could in fact start the development process again with StemCell Systems or with other contract research entities. However, that may only be possibly once sufficient funds are available to the company. It now remains to be seen how the stock fares in the coming days.
Traders Note
RCAR stock is trading above the 50-Day and 200-Day Moving averages of $0.22 and $0.25 respectively. Moreover, the stock is trading is the oversold zone with RSI stands at 40.
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