Boston, MA 06/17/2014 (wallstreetpr) – Specialty chemical company China XD Plastics Co Ltd (NASDAQ:CXDC) shares witnessed a highly volatile trading recently. Both the volume and the stock price recorded wide variation of late though there is no news to impact the stock either favorably or unfavorably.
Stock Price
The stock price plunged 10.27% to close at $8.74 on June 16. Though the volume recorded on Monday was sharply higher than the average three month volume, the preceding days trading indicated a high volatility in the volume.
Shares of China XD Plastics Co Ltd (NASDAQ:CXDC) dropped 20.1% in the current month alone based on the closing price of June 16. The yearly high of $13.24 was reached only on June 9, i.e. last Monday and within a week it plummeted 34%. This is in sharp contrast to the performance in the previous month, May. The stock surged 59.5% during the month of May. Similarly, in April too, shares of the company climbed 30.8%.
Despite the weaknesses, the stock’s closing price of June 16 indicated that it is still higher by 106% compared to the 52-week low price of $4.24. For the current year too, shares of China XD Plastics recorded a gain of 66.2%.
The technical barometer of 50-day and 200 day moving average price of $9.31 and $6.22 respectively suggests that the closing price of Monday witnessed a 6.1% drop indicating a potential further downside. However, the stock closed 40.5% more than the 200-day moving average price suggesting that the stock could see a reversal of the trend in the medium term.
Volume of Trade
There is a wide variation of trading volume in the recent past. For instance on the day the stock hit a 52-week high, the volume was only 712.7K shares. However, within a couple of days, the volume reached 1.85 million shares on June 11 and 2.0 million shares on June 12. The next day saw a steep drop in volume to 497.3K shares and jumped again to 1.32 million shares on Monday.
While the higher volume of trading could be attributed to either favorable or negative news, it is hard to find reason for such a volatile trading since there is no news from China XD Plastics Co Ltd (NASDAQ:CXDC) or the brokerages except that the sentiments are weak.
