Why Urban Tea, Inc. (MYT) Is Getting Hammered Today

Urban Tea, Inc. (NASDAQ:MYT) is among the top losers of the stock market today, sinking -2.77% or (-0.01 points) to $0.34 from its previous close of $0.35. Does this decline mean it the best stock to buy right now? The shares seem to have an active trading volume day with a reported 290843 contracts so far this session. MYT shares had a relatively better volume day versus average trading capacity of 486.53 thousand shares, but with a 0 million float and a 12.77% run over a week, it’s definitely worth keeping an eye on. MYT share price has been trading recently between $0.32 and $0.53.

The shorts are running away from Urban Tea, Inc. (MYT) stock. The latest set of short interest data was released on 31 July 2019, and the numbers show a drop in short interest in MYT shares. While short interest still represents only 0% of MYT’s float, the number of shares shorted have fallen by -2463. The number of shares shorted fell to 125210 shares, down from 127673 shares during the preceding fortnight. With average daily trading volumes at 41863 shares, days to cover increased to about 2.967276 days. The most recent news story about the stock that appeared in Yahoo Finance‘s news section was titled “Urban Tea, Inc. Enters into a Non-Binding Letter of Intent to Acquire Hunan 39 PU Tea Co., Ltd.” and dated August 13, 2019.

During the recent trading session for Urban Tea, Inc. (NASDAQ:MYT), the company witnessed their stock rise $0.07 over a week and tumble down $-0.2 from the price 20 days ago. When compared to their established 52-week high of $2.77, the high they recorded in their recent session happens to be lower. Their established 52-week high was attained by the company on 03/25/19. The recent low of $0.25 stood for a -87.73% since 02/08/19, a data which is good for most investors who are looking to take advantage of the stock’s recent rise. A beta of 0 is also allocated to the stock. Since the beta is less than one, it implies that the stock is more volatile than the market, a data that traders are keeping close attention to.

Looking at the current readings for Urban Tea, Inc., the two-week RSI stands at 33.26. This figure suggests that MYT stock, for now, is neutral, meaning that the shares are stable in terms of price movement. The stochastic readings, on the other hand, based on the current MYT readings is similarly very revealing as it has a stochastic reading of 29.02% at this stage. This figure means that MYT share price today is being overbought.

Technical chart claims that Urban Tea, Inc. (MYT) would settle between $0.48/share to $0.61/share level. However, if the stock price goes below the $0.27 mark, then the market for Urban Tea, Inc. becomes much weaker. If that happens, the stock price might even plunge as low as $0.19 for its downside target. The stock is currently in the green zone of MACD, with the indicator reading 0.02. Traders are always alerted for the move of a stock above or below the zero line due to the fact that the reading is an indicator of the position of the short-term average relative to the long-term average. If the MACD is above the zero line, then the short-term average relative is above that of the long-term average, thus implying an upward momentum. Vice versa is the case if the MACD is below the zero line.

Moving on, MYT stock price is currently trading at 0X forward 12-month Consensus EPS estimates, and its P/S ratio is 0.33 while for the average stock in the same group, the multiple is 0.88.