Simon has over six years of professional trading experience across FX, commodities and equities. He has a strong passion for financial markets and is particularly focused on price action trading
Marine Petroleum Trust Corp (NASDAQ: MARPS) stock price rallied as high as 72.9% premarket as retail investors pushed the trust’s price higher in what could be a relief rally.
There was no real news from the company to support the rally. Hence, it was driven mainly by investor sentiment.
MARPS stock was a popular topic on social networks such as StockTwits, Reddit, and Twitter as retail investors singled out the trust as a safe bet among oil stocks.
The royalty trust has significant exposure to the Gulf of Mexico, where it administers and liquidates rights to payments from specific oil and natural gas leases in the region.
MARPS is considered a low float stock since, based on data provided by Finviz, the trust has an entire stock float of 1.6 million shares.
The trust had given up a significant portion of its premarket gains at writing and could be headed lower if investors keep chasing out their gains.
However, similar rallies by meme stocks have resulted in multiple-day rallies; hence, it could rally higher in future.
Meanwhile, today’s rally has created a parabolic rally that is typically followed by a pullback, which could provide an opportunity for traders who missed the initial move to get in.
However, traders who get into such trades should know that these are speculative trades driven by retail trader sentiment. Hence, they should manage their risk exposure appropriately.
*This is not investment advice. Always do your due diligence before making investment decisions.
MARPS stock price.
MARPS stock price rallied up to 72.91% higher to trade at $8.68, rising from Monday’s closing price of $5.02.
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