Tech Penny Stocks Can Run Up Big. But When There’s Penny Stock News In Play, That Run Can be Larger Than Expected. This Is The Case For Cemtrex Inc. (CETX), Today.
June 27th brought a lot of penny stocks to watch. Many were even gapping up before the opening bell. This gave investors a lot of opportunities to cash in early during the trading session. It is the exact reason why investors love to buy penny stocks. A hot tech penny stock to watch on the 27th is Cemtrex Inc. (CETX Stock Report).
Who Is Cemtrex (CETX) and Why Did CMTX Stock Move So Much?
Cemtrex Inc. is an electronic and technology manufacturing company. It sells items including Internet-of-Things products and office products like standing desks. On June 27th Cemtrex revealed it received $6 million in new orders and have a backlog of $50 million.
“Cemtrex’s EMS segment continues to win new business from both new and existing clients. Our backlog gives us continued confidence as we have already locked in enough orders to see growth in our year over year sales over the next twelve months.”Saagar Govil, Chairman and CEO of Cemtrex
Because of this extremely positive penny stock news, CETX stock has seen historical volume levels and crazy price action. The stock has a volume of over 17 million, which is the first time in its history. Furthermore, this tech penny stock rose from $1.83 all the way to $5.39, a staggering 195% move before noon.
Penny Stock Technical Analysis
Although Cemtrex’s news is very good, traders should still use technical analysis to evaluate the stock. When looking at the stock’s chart, June 13th’s trading session clearly sticks out. What does the candle on June 13th show exactly? For one, the high of the day, $4.58, could act as a support/resistance pivot point for CETX. It’s further supported by the CETX stock chart in late February. At that time, CETX stock held $4.58 as support for many trading sessions.
In addition, Cemtrex’s stock failed to close above the 100-day moving average on June 13th. Traders should keep an eye on whether or not CETX can hold that 100-day moving average as support this week. Since May of 2018, the 100-day moving average has acted as a heavy point of resistance for the stock. Could it now be turning into support?