Hollysys Automation Technologies $HOLI Stock Targeted By Short Sellers On HFCAA Flag

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Hollysys Automation Technologies $HOLI stock is being targeted by short-sellers on October 24, 2022, after news broke that the SEC has flagged Hollysys Automation Technologies for HFCAA compliance.

What is the HFCAA

In December 2020, then-US president Donald J. Trump signed into law the Holding Foreign Companies Accountable Act (the “HFCAA”). The HFCAA requires the SEC to identify, every year, any public companies that file annual reports, such as on Forms 10-K and 20-F, with an auditor that the PCAOB has determined it is unable to inspect or investigate completely because of positions taken by a foreign authority. As a result, these companies, designated as Commission-identified issuers, must provide certain disclosures when they have been identified. After three consecutive years of being identified, trading in the securities of that company in the United States will be prohibited.

Dark Pool Trading In Hollysys Automation

We cannot determine if the unusually large dark pool trade on July 5, 2022, was buying or selling. However, it suggests that the $14.70 price level is a major pivot level to watch.

Hollysys Automation stock chart on October 24, 2022, with a dark pool trade shown in orange bar, with a table to the right with the text TIME SYMBOL MESSAGE PRICE 07/05/22 HOLI 275,680 DARK ISO AA $4M 150.13% AvgVol $14.70 07/05/22 HOLI Unusual Dark Pool Activity $14.70

Make sure to review this lesson on dark pool trading so that you understand the chart above.

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Hollysys Automation Technologies $HOLI Stock Technical Analysis

Hollysys Automation Technologies $HOLI stock is in a downtrend. The market is approaching oversold territory so a trend reversal is possible. The timer of 3 years has started on the delisting of Hollysys $HOLI stock from U.S. exchanges.

Hollysys Automation stock chart on October 24, 2022, in a downtrend channel with a negative MACD and negative money flow.
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