Thursday, May 3, 2012

ICPA - The End Of A Spectacular Rally

ICPA has has a great rally.  The stock has gone from a 52 week low of $.0008 to almost $.05 a share.  This is why penny stock traders trade penny stocks.  The allure of enormous gains.  ICPA has done just that, and after such a giant rally, its time to sell and move on.

ICPA is showing weakness on the chart, and I think the stock is going back under $.02 and ultimately to $.005.  The stock is nearing a bearing "death cross" with the 50 and 200 DMA.  The MACD is turning the wrong direction for the bulls.

Anyone buying a stock that is up some 1,500% in the span of a month needs to know the risks associateed with such a purchase.  Just ask yourself one question:  "What would you do with the shares you bought at $.005 or even $.001 should ICPA start to lose momentum?".   Sell.  And we are right at the start of that selling.

You don't have to look any further than SNPK a stock I thought was going lower.  I wrote a similar post on my blog and a mere 30 minutes later the stock fell over 40%.

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