Recon Technology, Ltd. (NASDAQ: RCON) is having a strong start to the trading session this morning. While the company hasn’t released any news, we believe that we’ve found the reason for the bounce back. Ultimately, cryptocurrencies are moving back into positive territory, and with the recent blockchain announcement out of RCON, that’s good news for the company. Today, we’ll talk about the recent blockchain news, what we’re seeing from the stock, and what we’ll be watching for ahead.
RCON Recently Announced It’s Break Into Blockchain
As mentioned above, Recon Technology is having an overwhelmingly strong start to the trading session. Ultimately, we believe that the gains have to do with a revived cryptocurrency and blockchain sector. That’s because, just days ago, RCON made an announcement with regard to its break into the blockchain.
In a press release issued just a couple of days ago, RCON announced that it signed a two-year joint development term sheet with Future Gas Station Technology. Under this partnership, the two companies will work to integrate blockchain-based mobile shopping technology in the gas station sector. In the PR, Recon said that FGS will be in charge of developing the system while RCON provides resources and funding. In a statement, Mr. Yin Shenping, CEO at RCON, had the following to offer:
“We’re glad to cooperate further with FGS to explore the effective use of blockchain technology in our business. We are excited about the opportunities such technology provides us to adapt to consumer behaviors to better meet their needs and improve efficiency and profitability in our customers’ stores. We believe development of blockchain technology will benefit both Recon and FGS.”
What We’re Seeing From The Stock
One of the first things that we learn as investors is that the news moves the market. In this particular case, cryptos are making a run for the top after recent declines. As a result, we’re seeing correlated gains across multiple publicly traded companies that have recently announced an entrance into the blockchain, RCON included. Of course, our partners at Trade Ideas were the first to alert us to the gains. Currently (10:04), RCON is trading at $2.99 per share after a gain of $0.68 per share or 29.44% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on RCON. In particular, we’re interested in following the company’s ongoing work to break into the world of blockchain. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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