Here’s Why the Mercurity Fintech (MFH) Stock Price Soared 69% Today

Trade Mercurity Fintech stock Your capital is at risk
Simon Mugo
Updated: 24 Mar 2022

Key points:

  • Mercurity Fintech stock soared 69% despite the lack of news releases.
  • The stock rally was attributed to factors such as rising BTC prices.
  • However, investors should not rush to buy until there are clear catalysts.

The Mercurity Fintech Holding Inc- ADR (NASDAQ: MFH) stock price soared 69% despite the lack of announcements from the company that specialises in the blockchain industry.

new-recommended-broker-banner

Mercurity’s services include Bitcoin mining, digital currency investment and trading, among other services that exploit the opportunities available within the blockchain industry.

Also read: The Best Undervalued Stocks To Watch In 2022.

Today’s rally was attributed to rising bitcoin prices, but I don’t think the world’s leading cryptocurrency has risen by a wide enough margin to trigger the 69% rally in MFH stock.

Another explanation for today’s rally could be a classic pump and dump scheme. Some investors typically buy a company’s shares to raise their value significantly before announcing a share issue to capitalise on the higher stock prices.

Suppose you have read some of our articles. In that case, you will see that we always discourage investors from buying financial assets after they have rallied significantly since the probability of a pullback is usually pretty high when an asset is trading at multi-month or all-time highs.

A common philosophy that should guide your investment decisions is to avoid parabolic rallies and only buy the assets you like on pullback. Remember that buying a good asset at the wrong price is just as bad as buying an impaired asset.

For example, investors who bought Bitcoin at its all-time high of over 468K are now sitting on massive losses since they chased the cryptocurrency higher driven by the fear of missing out (FOMO). Likewise, those investors who did not take their profits following the impressive run could be sitting on losses if they had bought at prices below $40K.

Therefore, savvy investors are always looking to buy on pullbacks and have rules on taking their profits so that the proverbial pullback does not erase the losses they worked so hard to accumulate.

The last significant announcement made by MFH was on January 5, 2022, when they released the financial results for the third quarter of 2021 ended September 30, 2021. Investors are patiently waiting for its Q4 results, which should be released soon.

Therefore, I would stay away from MFH stock until we have some solid news from the company, like the much-anticipated Q4 results.

*This is not investment advice. Always do your due diligence before making investment decisions.

The Mercurity Fintech stock price.

Mercurity Fintech stock price 24-03-2022
Source: Tradingview

The Mercurity stock price soared 69% to trade at $3.55, rising from Wednesday’s closing price of $2.10.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage . 68 % of retail investor accounts lose money when trading CFDs with this provider . You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money .