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With the GameStop Corp. (GME) story creating so much noise around low-priced stocks lately, it can be incredibly helpful to pause, take a deep breath, and concentrate instead on the technical set-up of equities, rather than all the convoluted news behind them.
Below, you’ll find a few of the more interesting technical analysis plays my team and I have spotted. From the relative strength index (RSI) indicator to double bottoms to bullish Japanese candlestick patterns, we’ve got you covered.
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.
GTT Communications, Inc. (GTT)
GTT Communications, Inc. (GTT) has halved in price amid rumors of bankruptcy and shareholder lawsuits galore. However, brave readers may want to investigate it further based on its RSI of 24.70, which suggests that the stock is oversold. After all, even dead-cat bounces can bring quick-thinking investors some good money if they’re able to move fast enough … and exit at the right moment.
TradingView.com
LiveXLive Media, Inc. (LIVX)
As of the time I was writing this article, LiveXLive Media, Inc. (LIVX) had gapped upward almost 10% on the heels of its announcement of a new pay-per-view concern featuring K-pop star Wonho. Does this mean that its -18% downtrend over the past month is at an end? I’d wager that it might be, but make sure you exit the position quickly if it looks like it isn’t playing out as you expected.
TradingView.com
VEON Ltd. (VEON)
Dutch telecoms company VEON Ltd. (VEON) capped off the last business day in February with a bullish Marubozu candlestick. This indicator, which looks like a white rectangle on the stock’s trading chart, typically bodes well for a company’s short-term future. Let’s hope that March brings VEON investors some much-needed cheer.
Evolving Systems, Inc. (EVOL)
I’m liking Evolving Systems, Inc. (EVOL) at the moment due firstly to its bullish moving averages (MAs), with 10 out of its 15 MAs (as measured by TradingView.com) pointing to Buy. Secondly, a hammer candlestick and then a white Marubozu appearing at the end of February may signal a conclusion to Evolving Systems’ week-long downtrend. I note, however, that this stock is still trading very much beneath the radar, meaning that the hammer candlestick may not be quite as trustworthy. Watch this one especially carefully and be ready to move quickly.
TradingView.com
Quotient Limited (QTNT)
The double bottom reached by Quotient Limited (QTNT) in November and the end of February may mean that prices are headed northward over the month of March. That, plus some good news flow (not technical analysis-related, but it doesn’t hurt!), has me feeling bullish about Quotient Limited stock.
TradingView.com
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.
