Sunvalley Solar Inc. (OTC:SSOL) is breaking out on heavy volume in continuation of the previous day’s rally. The stock was recently recommended by KillerPennyStock.com newsletter service and had a major contract revealed early this morning.SSOL has been picked up by a bunch of other newsletters as well, building up buying pressure since last Thursday. Since the buyers were further stimulated by the company’s news, right now it could continue the appreciation until the end of the week.[BANNER]
Recommendations from newsletters usually create short-term buying pressure – many traders suddenly want to have the stock and the price rises as they are trying to get it. Since the price of the stock goes up ignoring the fundamentals, it is likely to go down fast when there are no more new buyers pouring in.
News work like an accelerator in such cases, as they add to the hype and extend the opportunities for profits. This is exactly what is happening with Sunvalley Solar right now. The golden rule is to look out for the first red day on these extensive rallies, which usually indicates the end of the fun.
Sunvalley Solar Inc. is a new play in the penny stock world, coming in after the company merged with their wholly-owned subsidiary in July 2010.
