Penny stocks are often followed quite closely by millions of investors. The simple reason behind that is the fact that it is often possible for investors to make massive returns if they can manage to back the right penny stock.
What To Watch
Over the past months, RichTv Live has unearthed plenty of interesting penny stocks that could be considered by investors. The YouTube channel has done this series quite regularly and in the latest video, the analyst unveiled its latest ‘secret’ penny stock. The company in question is technology solutions provider Arcis Resources (OTC:ARCS), which has seen its stock skyrocket substantially through the course of the year so far.
It goes without saying that penny stocks could be quite volatile by nature and hence, investors need to take a closer look at the price action before deciding on a course of action. The Arcis stock has rallied by as much as 20000% over the course of the year so far and if any investors are looking for penny stocks, then this could be a stock worth tracking closely.
That being said, the RichTv analyst was also quick to point out that there are certain risks involved with the stock despite the enormous gains that it has managed to generate so far.
The RichTv analyst pointed out that stock zoomed from $.0002 a share to $.02 over the course of a month between November 13 and December 13. It suggests that the stock has clearly been on the radars of many investors. This past Friday, the stock recorded further gains and went up by as much as 136%.
While all this suggests that the stock has gained massive momentum, the analyst was quick to point out in the video that the numbers suggest that the Arcis stock is approaching overbought territory. If that is the case, then there is usually a sharp correction in the stock. It is a common theme in the stock markets and not something specific to penny stocks. That being said, it seems the possibility of the stock being overbought is the risk that RichTv was talking about.
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