Hot Penny Stock – MGLG Update
Posted on June 11, 2009 by Penny Stocks Picker
MGLG still looking like the next hot penny stock. First trade yielded 3000% profit from initial entry at .0001 on 3-27-09 and mentioned it several times. It hit a high of .0033 on 5-13-09 and pulled back and consolidated recently around .0004. On 5-22-09 I noticed a possible new signal to repurchase at .0004 (which I did) and mentioned it several times thereafter. Hey, now that’s it’s back up at .0017 you need to be careful as the risk is higher. You know me, I could really care less what the company does (although this is an Oil and Gas play) and I don’t normally do fundamental research on penny stocks. This is only a hot penny stock play based on hype and technical signals for me. Good luck 2 ya!
MGLG, why I like the chart: Today we hit .0017 on breakout volume (~1.5billion shares traded) with breakout price and busted right through the 200Day-MA (which is at about ~.0011). Today’s candle stick was extremely bullish (opened at low and closed at the HOD). These technical factors signal that we still have lots of interest, not to mention all the chatter. 1st level of support is the 200Day-MA and resistance is at around ~.0030ish. I wouldn’t be surprised to see this run up first thing in the morning. But who knows….you can never really tell. Having Level 2 will surely help!
On another note: As I mentioned a while back, I still think the DOW is going to trade around 8500 for some time and swing between 8200ish and 8900ish. I’m continuing to add to my 401K and have not cashed out. The key to investing is diversification. I wear different hats for each of my investing styles. With the penny stocks….it’s a game and I only play with money I can afford to lose (this is not money I need to retire with), don’t bet your house, life or wife on any one penny stock. Check out my educational articles in the category archives for some helpful information.
Tags: hot penny stock, Oil and Gas
Filed Under: Picks N Tips
Hey,
You seem to be intelligent. I’m looking to put money on a penny stock that is going to break. Im mainly looking at .0001 stocks right now.
In your advice, what is my best bet. most of your picks seem to be pretty accurate. Even if its not a .0001 pick, any help?
I hope you have read at least some of my educational articles in the category archives so you have a good idea about my philosophy and what your getting into. My Introduction article is a must read.
I wrote an article titled “Finding A Hot Penny Stock” which should give you some basic ideas on how to locate a penny stock on the move. I went for MGLG first at .0001 because of a UVSE sympathy play and I started to notice new interest in the stock (huge breakout volume). I have been trading MGLG with decent profits since.
The best chance to profit on a .0001 (or triple zero penny stock) is to identify new interest or one that is on the move (i.e hype of some sort, news….chatter….). I wouldn’t buy one that’s being hyped and isn’t following through (i.e. no volume or price movement). Buying volume is key along with breakout volume (above average volume) and upward price movement. Another way to play them is to buy back in on the pull back to a support level (I usually put my order in just above support and cross my fingers). In the end you must remember that penny stock is probably just a POS…..so take your profits when you got em. I have seen these penny stocks run and go right back down over and over again. It’s probably just a matter of time before MGLG is back in the triple zeros. However, for the moment MGLG still has lots of interest. I actually scored more today at .0010 but missed selling at .0020. We shall see what happens tomorrow.
Do believe that MGLG will fall back down around .0010 or less once the run is over today?
If I new what was going to happen….I would be rich and retired. All I can say is that there is interest at the moment (could last seconds to days). First level of support is the 200Day-MA (~.0011) and next decent support is at .0010. You would think it needs to test .0010 but in this game who knows.
Good Luck