Penny stocks are speculative but exhilarating way to explore trading. Seeing shares zoom hundreds of percent is what every trader lives for, particularly if you don’t need to pony up a lot of capital.
While the risks associated with penny stocks are vast – including falling prey to pump and dump schemes – imagine how helpful it would be to have an unbiased, completely impartial third-party to help you determine which penny stocks were setting up for meteoric moves and which ones were setting up for meltdowns.
The Profit Scanner powered by Recognia does exactly that by scanning a universe of 65,000 stocks, ETFs and currencies each day to scour their charts for recognizable – and tradable – technical patterns. While it also looks at everything from the biggest cap names like Google (GOOG) and Apple (AAPL) to the tiniest of nano-cap stocks you may never have encountered before, it can give you a neutral view point based on the technical pattern to help you know when to act which is invaluable when it comes to vetting penny stocks.
While we suggest you always do your homework and don’t follow any trading recommendation blindly, we wanted to bring you a micro-cap name the Profit Scanner identified as having the potential to jump 20% during the course of March.
It’s a stock that not only held steady during the tumultuous trading at the start of the week but actually inched ahead. And it’s trading for around a 25 cents a share, which couldn’t even buy you a pack of gum these days.
Labor Smart (LTNC) is a Georgia-based firm that provides temporary blue-collar staffing services primarily in the United States. It supplies general laborers on demand to the light industries manufacturers, warehouses, construction sites and more.
Founded in 2011 and IPO’d in August 2012 , LTNC traded above 70 cents at one point but has been lingering in the low $0.20s – now the Profit Scanner has uncovered a bullish Bottom Triangle pattern that indicates this could be one of the penny stocks that’s ready to move.
A bullish Bottom Triangle tells traders that a stock’s price seems to have reached a bottom, showing signs of reversal as it has broken upward after a period of uncertainty or consolidation. A Bottom Triangle shows two converging trendlines as prices reach lower highs and higher lows. Volume diminishes as the price swings back and forth between an increasingly narrow range reflecting uncertainty in the market direction. Then well before the triangle reaches its apex, the price breaks above the upper trendline with a noticeable increase in volume, confirming this bullish pattern as a reversal of the prior downtrend.
In the chart below, you can see the near-term target for LNTC is 29 cents to 31 cents, which is expected to resolve in approximately 23 trading days.
One of the issues with penny stocks centers on low volume, so if your additional research spurs you to act, try to use smaller orders to avoid disrupting the market and pricing yourself out of shares.
Profit Scanner powered by Recognia can help traders of all levels find new trading customized trading opportunities for finding the best stocks to buy or short in specific sectors, price points, timeframes and so much more. Or use Profit Scanner’s technical insight to validate your own trading ideas. See how easy this powerful tool is to help you uncover hidden opportunities in the market.