Silvercorp Metals Inc (NYSEAMERICAN:SVM) Stock Trends Lower: Down 7% in a Week

In the past week, the Silvercorp Metals Inc (NYSEAMERICAN:SVM) stock has been one of the notable laggards and has declines by as much as 7% during the period amidst a selloff.

Market Stats

On Monday, SVM stock went down 0.70% at $4.26 with more than 964K shares, compared to its average volume of 1.04 million shares. The stock has moved within a range of $4.1000 – 4.3450 after opening trading at $4.16.

Recent News

The decline in the stock had actually commenced last week on November 16 when the company had made a key announcement. Silvercorp announced on that day that its subsidiary company Henan Found Mining Co Ltd, in which it has a 77.5% stake, had started the process on a major project. The project in question is a flotation mill and storage facility with capacity of as much as 3000 tons a day.

The facility is going to be constructed close to the Number 2 mill, which is situated at Ying Mining District in Henan Province in China. In this regard, it should be noted that Silvercorp has already made an application for the purposes of re-zoning of land to the local county government.

While the development was a significant one for the company, the news was not welcomed with any enthusiasm by investors and it now remains to be seen if the stock can actually make a recovery any time soon. Investors could now do well to keep an eye on the developments.

Traders Corner

SVM stock is trading below the 20-Day and 200-Day Moving averages of $4.38 and $5.06 respectively. However, the stock is trading above the 50-Day moving average of $4.19. The stock is down 7% in the past week.