What does a stock range prior to being pumped

**Identifying Stocks Prone to Pumping**

1. **Low Price and High Volatility**: Stocks that are about to be pumped often start from a low price level and exhibit high volatility.
2. **High Short Interest**: There is typically a high level of short interest in stocks that are candidates for a pump-and-dump scheme. This indicates that a large number of investors are bearish on the stock, which can lead to a significant price drop if the pump fails.
3. **Lack of Positive News**: Stocks that are about to be pumped usually do not have any positive news or developments to support a price increase. The pump is often driven by speculation and false promises.
4. **Small Market Capitalization**: Smaller market capitalization can make a stock more attractive to pump-and-dump operators, as it is easier to manipulate the price of a smaller stock.
5. **Recent Earnings Release**: Stocks that have recently reported earnings and have beaten expectations can be targets for a pump-and-dump scheme. The positive earnings report can create a false sense of optimism, making investors more susceptible to the pump.

**Key Takeaways**: Before investing in a stock, it is crucial to conduct thorough research and avoid stocks with these characteristics, as they may be more prone to a pump-and-dump scheme. Always verify any investment opportunities through reputable sources and be cautious of excessive hype or false promises.