You're welcome. Back on March 12th when yours truly penned some bullish thoughts on MagneGas Corporation (NASDAQ:MNGA), nobody cared, largely because nobody had heard of the company, and there was no particular reason anybody had to find MNGA. Now less than a full week later, this once-obscure name is all the rage; no less than 21 different market-centric websites have made mention of the stock's explosive growth over the past few days. MagneGas has been proverbially put on the map, with shares surging 90% (as of right now) since the first exploration last Wednesday. So, like I said, you're welcome.... if you got in on the 12th, or even more realistically, got in on the 14th when MNGA finally crossed above the ceiling at $0.94 I was talking about a little less than a week ago.
I don't come here to gloat though.... well, not gloat too much. I'm mostly looking at MagneGas Corporation again today to suggest you lock in your gains and get out.
Say what? This thing is just starting to take flight! Why bail out now when things are just getting good? Because things have gotten as good as they're going to get for MNGA, at least for a while.
That's not going to be a popular stance. I'm ok with that. All I ask is that you hear me out.
The first big red flag suggesting that MagneGas Corporation shares has done all it can do for the time being is yesterday's enormously high volume. Yes, you want strong volume behind new trends. You don't want to waste all your volume capacity in one shot though, and with 18 million shares of MNGA trading hands on Monday versus the average of less than 700,000 per day prior to the breakout, it's reasonably safe to say that anybody who was willing to get into the stock at a price of more than $0.94 is already in. There can't be many buyers left.
Yes, the stock's up a little bit more today on pretty good volume, and may even top yesterday's volume levels. Take a closer look at today's action for red flag #2 though... MNGA left behind a bullish gap at the open, and has spent the bulk of the session selling off, as would-be profit-takers bail out, thinking we've already seen the highest prices we're going to see in a while. Take that hint.
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