Significant gains in a stock can eventually lead to a sharp correction since investors need to ultimately realise their profits and something of a similar nature happened with the Nova LifeStyle Inc (NASDAQ:NVFY) stock yesterday.
After having clocked considerable gains over the course of the week so far; the stock crashed by 10% after some investors decided to cash in on their profits. However, at the same time, investors need to keep in mind that the Nova LifeStyle stock is still up by as much as 16% for the week so far.
The latest correction in the stock could in fact be an opportunity for investors who might want to get into the stock and that is something one needs to figure out.
Last month Nova LifeStyle had announced that its fully owned subsidiary company Diamond Sofa had been successful in exhibiting a new line of designs at the High Point Market furniture trade show. It is a key industry event and the designs were exhibited by the company back on June 5, 2021. The Chief Executive Officer of the company Tawny Lam stated that the event has a special significant for Nova LifeStyle since it allows the company to display its products to a global pool of buyers.
On Wednesday, NVFY stock fell 10% at $4.04 with more than 8.50 million shares, compared to its average volume of 611K shares. The stock has moved within a range of $3.6600 – 5.5000 after opening the trade at $4.66. Over the past 52-week, the stock has been trading within a range of $1.4500 – 7.4900.