Why Is Jiuzi Holdings (JZXN) Stock Up 38% Today?

  • Jiuzi Holdings (JZXN) stock is rising alongside heavy trading volume this morning.
  • That has more than 10 million shares on the move.
  • The company’s daily average trading volume is about 2.5 million shares.
JZXN Stock. Photo of charging port on electric vehicle (EV) plugged into and being charged

Source: shutterstock.com/Nixx Photography

Jiuzi Holdings (NASDAQ:JZXN) stock is taking off on Monday despite a lack of news from the Chinese electric vehicle (EV) company.

Instead, heavy trading volume seems to be behind the increase in price for JZXN stock. As of this writing, more than 10 million shares have changed hands. That’s a massive surge over the daily average trading volume of about 2.5 million shares.

While investors might be tempted to jump into the JZXN stock rally, they should note the company’s penny stock status. It closed out on Friday at 20 cents per share and has a market capitalization of $5.116 million. This means JZXN is susceptible to volatility, especially during pre-market trading when retail traders are more active.

What This Means for JZXN Stock

With this morning’s rally, shares of JZXN stock are likely to attract traders looking to get in on the action. However, it seems likely the company’s stock will retreat. That could happen later today, or even tomorrow.

All in all, JZXN stock is a risky investment that traders will want to be wary of on Monday. While there could still be room for profits if it rallies further, it seems more likely that the stock will see a steady decline during today’s normal trading hours.

JZXN stock is up 37.8% as of Monday morning.

Investors searching for all of the latest stock market news will want to keep reading!

InvestorPlace is home to all of the hottest stock market coverage traders need to know about on Monday morning! Among that is what has shares of Secoo Holding (NASDAQ:SECO) stock rallying, this morning’s biggest pre-market stock movers, and more. You can catch up on that at the links below!

More Monday Stock Market News

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Read More:Penny Stocks — How to Profit Without Getting Scammed

On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

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