Last week the 665 Energy Inc (OTCMKTS:SSOF) stock emerged as one of the more popular stocks in the energy sector and went on a strong rally as the stock gathered momentum.
However, on Monday, some investors decided to take their profits off the table and the stock corrected by as much as 21%. While the fall was steep, investors should not forget the fact that the 665 Energy stock is still up by as much as 50% over the course of the past week. In this regard, it is also necessary to point out that although the stock rallied strongly last week, there was no material news about the company.
However, the trading volumes in the 665 Energy stock were quite high and there was considerable interest from investors as well. Penny stocks like 665 Energy can often make big moves despite their being no news and the rally was possibly a case of speculative trading. Moreover, the company has not made any disclosures since as far back as 2019 and hence, investors need to be quite careful when they are trying to trade a penny stock on the back of strong momentum alone. It will be interesting to see if the stock recovers today or not.
Market Reaction:
On Monday, SSOF stock slumped 21% at $0.0134 with more than 22.56 million shares, compared to its average volume of 27.67 million shares. The stock had moved within a range of $0.0126 – 0.0175 after opening the trade at $0.0174. Over the past 52-week, the stock has been trading within a range of $0.0005 – 0.0198.
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