Momentum Players

[Crazy Money]

JPHC: Talk About Risky... lol

http://www.marketvibrations.com/index.php?subaction=showfull&id=1146021979&archive=&star...

Apr 25 2006 10:26:19 pm
Stock Market Analysis by Lonny Rosenfeld

Everyone knows that penny stocks are very risky. Many of these stocks come and go and many of these stocks deliver enormous gains or losses in short periods of time. This is exactly the case with Jupiter Global Holding (JPHC.PK). Since early February shares have had a gain of 350%. Well what does a gain of 350% mean for the stock price? It has moved from $.0002 to $.0009. Yes folks a mere $500 dollars can get you over 500,000 shares of this company. Regardless of the low share price, a 350% gain is still a 350% gain. In order to get a gain like this you either invest in a company like Google (GOOG) in its IPO stage or you take a chance with one of these penny stocks. The risk is high like I said, but the gains can truly be amazing as is currently the case with the 350% gain of Jupiter Global Holding.

Given that shares have rallied about 350% from their low in early February, does this mean that it is now too late to get in and get a piece of those gains? Of course that is the million dollar question and I can not give you a definite answer to that question. I do have an opinion on possible scenarios that may occur and will explain them below. Before I get started, take a look at the chart I have provided.




Looking at the chart above it is very easy to see the rally that has occurred. There are very well defined upper and lower bands as well. I have labeled these bands below. Take note that the upper and lower bands are narrowing towards the right side of the chart. This is typically a bullish sign and may be signaling a possible breakout for this stock. In order for a breakout to occur shares would have to break above the $.0013 resistance. Shares may very well be in the process of preparing for this move.

The last trade to take place was at $.0009, this sits right on a very important support level. In the past $.0009 has proven to be a very tough area of resistance and shares have failed to break this level several times in the past. Since shares have recently broken through this resistance level it will now act as a support level on the downside. This is the likely explanation as to why shares did not close below $.0009 on Tuesday.

Taking a look back at the lower band, the next level of support on the downside if $.0009 does not hold up is $.0008. At this time I believe it is more likely shares will make another run at the $.0013 resistance than fall to the $.0008 support.

I have done my best to provide my insights to what may or may not occur with Jupiter Global Holding, but keep in mind once again; there is a very high level of risk involved with this stock. I have always found that it is best to only invest in penny stocks with money that you can afford to lose, because yes there is a chance you can lose most of the money you have invested, but there is also the chance that the current 350% gain could turn into a 700% or higher gain.

Good luck to those already invested, continue to monitor the support and resistance levels, they will most likely have a large impact on what occurs over the short term.