China Natural Resources (NASDAQ:CHNR) stock is taking off on Thursday despite a lack of news from the Chinese mining company this morning.
Instead, heavy trading is behind the rally. That has more than 4.6 million shares of CHNR stock being traded as of this writing. To put that in perspective, the company’s daily average trading volume is closer to 62,000 shares.
This increased trading activity comes without any clear news from the Chinese company. However, investors will keep in mind that stocks based out of China have been more volatile recently.
Another thing to note is that CHNR stock is a penny stock. This comes from its low trading volume, its previous closing price of $1.10 and its market capitalization of only around $8.5 million.
How This Affects CHNR Stock
Being a penny stock opens China Natural Resources’ shares up to certain vulnerabilities. This includes manipulation from retail and day traders. This often sees them pump up a stock’s price before dumping it for profits.
If this is what’s happening to CHNR stock today, investors will want to avoid the shares. The stock seeing such an incredible rise might make it a tempting investment, but a dump is likely to pull shares back down in the short term.
CHNR stock is up 201.8% as of Thursday morning.
Investors who want even more of the most recent stock market stories are in luck!
We have all of the hottest stock market news traders need to know about on Thursday! Among that is why shares of JX Luxventure (NASDAQ:JXJT) stock are up, the biggest pre-market stock movers this morning and more. You can read up on all of these matters at the following links!
More Stock Market News for Thursday
- Why Is JX Luxventure (JXJT) Stock Up 380% Today?
- Today’s Biggest Pre-Market Stock Movers: 10 Top Gainers and Losers on Thursday
- Biden Sends Lockheed Martin (LMT) Stock Falling With Slashed F-35 Order
On Penny Stocks and Low-Volume Stocks: With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this fact and warn readers of the risks.
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.
