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The stock market is reaching ever more dizzying highs and becoming increasingly untethered from economic realities, in my opinion. That’s one reason why I like using technical analysis to plow through the thousands upon thousands of penny stocks I look at every day: it’s refreshingly uncomplicated, once you get the hang of it.
Below, my team and I have compiled a list of the most intriguing penny stocks out there right now, according to various technical analysis metrics. As always, I hope you’ll find something here that will help you accomplish your investing goals and expand your financial education.
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.
Broadwind, Inc. (BWEN)
Broadwind, Inc. (BWEN) has a number of good signals popping up on its chart right now. (And it’s already trading at $4.91 per share, so if you’re determined to invest only in penny stocks, you had better move quickly!)
I’m seeing a recent gap upward, which is certainly auspicious, as well as numerous bullish moving average figures. These include exponential moving averages (10, 20, 30) and simple moving averages (10, 20, 30). I’ll be looking for Broadwind stock to hit $6.00 shortly.
TradingView.com
Arlington Asset Investment Corp. (AAIC)
As with Broadwind, Arlington Asset Investment Corp.’s (AAIC) charts are screaming “Buy!” at the moment. A bullish Marubozu candlestick at the beginning of this month, paired with strongly positive moving averages (with 14 out of 15 metrics signaling a Strong Buy, according to TradingView.com) and broadly bullish oscillators, lead me to believe that Arlington Asset Investment will see much higher share prices over June.
TradingView.com
Atossa Therapeutics, Inc. (ATOS)
Atossa Therapeutics, Inc. (ATOS) has been in the news lately after publishing some interesting new research that it claims may reveal something about the coronavirus’s origins. For now, I’m ignoring that in favor of its technical signals, which are for the most part extremely bullish.
For one, I’m seeing multiple gaps upward in its charts of late. A bullish Marubozu candlestick on the first day of June is also a great sign … even though shortly before this report’s publication, it developed a wick/shadow, rendering it slightly imperfect. Finally, trading volume is through the roof here, which makes me even more confident in those technical signals.
One word of warning here: the relative strength index is at 74.13, which suggests that the stock is overbought. This may not accordingly be a good long-term hold.
TradingView.com
1847 Goedeker Inc. (GOED)
1847 Goedeker Inc. (GOED) was one of the stock market’s biggest losers at the end of May. But are things turning around for this beleaguered stock? They just might be, if we’re to trust the technical signals here.
The relative strength index, for instance, is at 29.14, suggesting that shares are oversold and that a trend reversal should be appearing soon. And some doji candlesticks over the past few days indicate that shareholders are uncertain about the stock’s trajectory – which usually, after a downfall as big as that of 1847 Goedeker, means an uptrend could be in the works.
TradingView.com
Harbor Custom Development, Inc. (HCDI)
I like Harbor Custom Development, Inc.’s (HCDI) multiple bottoms pattern because this chart signal typically implies that a bullish trend reversal is relatively near. So far, we’ve had price troughs at roughly $3.00 appearing in March, April, and May.
However, now Harbor Custom Development may be breaking out of its rut, climbing over the past few days to $3.26. If the stock is able to transcend its $3.50 (give or take) resistance levels this time, then we could see it ultimately heading back to $4.50 to $5.50 over the next few weeks or months.
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.
