Soaring Jammin Java Corp. (PINK:JAMN) on the Verge of Burnout

The last few weeks have been unusually successful for Jammin Java Corp. (PINK:JAMN) as the penny stock has registered some really huge gains on the stock market. While this development might relate to the recent overly optimistic corporate press releases, JAMN shares might be getting overburnt in the meantime.

Closing trade at $0.37, JAMN gained an astonishing 66% when it closed trade yesterday. More than 3.5 million shares changed hands, which is eight times higher than the average daily trading volume. Thus, JAMN built up on the hype caused by the Friday news about the imminent presentation of the company’s gourmet Marley Coffee line on a popular cooking show airing on Jan. 30.

Back on Dec. 11, the company proudly announced having placed half a million real coffee cups within the first month of distributing the product. As promising as this might seem at first sight, we have yet to see the real impact of the product on the company’s well-being when we see the upcoming Q4 report.

As far as the current session is concerned, JAMN is up 30% from its yesterday close for the time being. Keep in mind, though, that the stock is way overbought as the RSI indicator has just cracked the 93% mark. Not to mention that the strong momentum JAMN shares are experiencing at the moment could easily unleash a string of insider transactions by select stockholders who would reap benefits at the expense of regular traders.

In the light of JAMN‘s risky course towards a burnout, it would be wise not to push your luck too much at this stage.