Shares of Silvergate Capital Corp. (SI) are gapping lower into the single digits in early trading Thursday. The crypto-based bank has delayed their annual SEC filing on the heels of higher losses and a regulatory probe, while a major sell-side firm has turned bearish on the stock.
Let's check out the charts.
In the daily bar chart of SI, below, I can see that the shares have been in a heart-stopping decline the past year. SI trades below the declining 50-day moving average line and is "extended" below the weak 200-day line.
Trading volume has been heavy in the past four months but it has not produced a change of ownership to strong hands. The daily On-Balance-Volume (OBV) line shows strength in February but that may be due to short-covering. The Moving Average Convergence Divergence (MACD) oscillator failed at the zero line and has turned lower to a new sell signal.