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It’s earnings season, which means you’ll see a lot of volatility in your stock portfolio—particularly if you’ve made significant investments in penny stocks.
Low-priced equities have a deservedly bad reputation, for the most part, given their volatility. But technical analysis can help you play those highs and lows to your advantage, getting in and out of shares when the timing is right. Read on for some of my top picks for the month.
Some of the set-ups I describe below may no longer be relevant or intact as of the time you read this article. Please conduct your own due diligence. Many stocks mentioned here were also discussed in the Peter Leeds Newsletter. Peter may own shares in some of the investments mentioned, in which case that fact will be clearly indicated. Please note that penny stocks are notoriously volatile.
Athersys, Inc. (ATHX)
As of the time I was writing this report, Athersys, Inc. (ATHX) had a bullish/white marubozu candlestick appearing at the end of a long downtrend, which was backed by high relative volume at 1.17x, or approximately 1.5 million shares vs. its 1.3 million average. This is a strong indication that the stock could see a dramatic positive reversal in the near term.
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Denison Mines Corp. (DNN)
Like Athersys above, Denison Mines Corp. (DNN) has a white marubozu candlestick appearing on its chart. That’s a fantastically bullish sign that the stock’s prices will climb in the month ahead. I also like Denison Mines from an industry standpoint.
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AcelRx Pharmaceuticals, Inc, (ACRX)
Not only does AcelRx Pharmaceuticals, Inc, (ACRX) have a relative strength index (RSI) of 29.73, which suggests that it’s oversold and due for a turnaround, but a hammer candlestick at the beginning of November could be indicating that the stock will see higher prices in the short term after an over-50% fall in value over the past year.
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CohBar, Inc. (CWBR)
CohBar, Inc. (CWBR) fell off a cliff at the end of October, but the first day of November saw the stock gap up approximately 6% as of the time this report was being written. Combined with an ultra-low (and therefore bullish) RSI of 28.81, CWBR is looking like it might have a strong performance ahead of it—at least in the near term.
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Harbor Custom Development, Inc. (HCDI)
As of the time I was writing this article, Harbor Custom Development, Inc. (HCDI) had a tremendously strong bullish signal in the form of its inverted hammer candlestick. It was backed by very strong trading volume, with relative strength at a stunning 11.35x. This suggests that HCDI could be preparing to reverse some of its 25% loss over the past month.
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Penny stocks are volatile and can generate catastrophic losses. Price levels in this article are hypothetical and do not represent buy recommendations or investment advice. Keep in mind that it’s your responsibility to make trading decisions through your own skilled analysis and risk management.
Peter Leeds is the author of several books, including the international bestseller, “Penny Stocks for Dummies.” He and his team also issue a newsletter devoted exclusively to penny stock picks and analysis, as well as a popular YouTube channel PeterLeedsPennyStocks.
