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%.