USA Technologies, Inc. (NASDAQ:USAT) Tanks on News of Contract Investigation
Unattended payments provider USA Technologies Inc. lost a third of its value Tuesday morning on news it would delay filing its annual report while its board of directors investigates customer contracts and how business was booked.
The company had until Sept. 13 to file its annual report with the Securities and Exchange Commission for fiscal 2018 ended June 30, but now it will ask for a 15-day extension, Malvern, Pa.-based USAT said in a news release.
USAT’s stock has enjoyed a strong run over the past year—more than tripling in value by mid-August—in the wake of the Cantaloupe acquisition and other business wins. But shortly after 11:00 a.m. Eastern Tuesday, its shares were trading at $10.31, down $4.99 or 33% from Monday’s $15.30 close. “The valuation on this was so high that any whiff of bad news, the shorts [short sellers] are going to kill it.
Overall, the bias in prices is: Downwards.
Note: this chart shows extraordinary price action to the downside.
The projected upper bound is: 11.98.
The projected lower bound is: 6.23.
The projected closing price is: 9.10.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 26 white candles and 21 black candles for a net of 5 white candles.
A falling window occurred (where the bottom of the previous shadow is above the top of the current shadow). This usually implies a continuation of a bearish trend.
Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 24.6398. This is not an overbought or oversold reading. The last signal was a buy 10 period(s) ago.
Relative Strength Index (RSI)
The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 21.88. This is where it usually bottoms. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 15 period(s) ago.
Commodity Channel Index (CCI)
The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is -424.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 2 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 4 period(s) ago.
Rex Takasugi – TD Profile
USA TECHNLOGIES closed down -6.100 at 9.200. Volume was 723% above average (trending) and Bollinger Bands were 112% wider than normal.
Open High Low Close Volume___
10.000 11.520 9.150 9.200 6,492,463
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 15.15 14.94 11.24
Volatility: 299 147 90
Volume: 1,200,582 624,570 628,845
Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.
USA TECHNLOGIES gapped down today (bearish) on heavy volume. Possibility of a Breakaway Gap which usually signifies the beginning of a major market move. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
USA TECHNLOGIES is currently 18.1% below its 200-period moving average and is in an downward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. Our volume indicators reflect volume flowing into and out of USAT.O at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on USAT.O and have had this outlook for the last 0 periods. Our momentum oscillator is currently indicating that USAT.O is currently in an oversold condition.