3 Penny Stocks to Watch

Start your penny stock research with these names today

   

Some traders mistakenly think that technical analysis and penny stocks are an ill-fated combination…but that’s not always true. Using technical analysis on penny stocks is not a foolproof method because of the low liquidity often associated with penny stocks, so here are a few ideas  from the Trending123 Pattern Scan powered by Recognia to get your research started. All have volume over 200,000. These patterns are expected to play out in the intermediate term (six weeks to nine months).

Upside Breakout

5 14 13 rox 300x183 3 Penny Stocks to Watch
Click to Enlarge
Castle Brands
(NYSE:ROX)

The price broke upward out of a trading range suggesting we’re entering a new uptrend. The Upside Breakout pattern represents a trading range in which prices move sideways between two parallel horizontal lines. It’s often a pause or congestion area within an existing trend though sometimes the breakout results in a reversal to the prior trend. Either way, an upside breakout through the upper resistance line signals an end to the consolidation period and the start of an uptrend.

Volume: 299,724

Target Price: $0.09 – $0.11

Stop: $0.19

Bottom Triangle

5 14 13 pmbs 300x191 3 Penny Stocks to Watch
Click to Enlarge
Puramed Biosciences
(OTC:PMBS)

The 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.

Volume: 841,304

Target Price: $0.09 – $0.11

Stop: $0.008

Symmetrical Continuation Triangle

5 14 13 vsym 300x189 3 Penny Stocks to Watch
Click to Enlarge
View Systems
(OTC:VSYM)

The price has broken upward out of a consolidation period, suggesting a continuation of the prior uptrend. A Symmetrical Continuation Triangle (Bullish) 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 out above the upper trendline with a noticeable increase in volume, confirming the pattern as a continuation of the prior uptrend.

Volume: 978,570

Target Price: $0.07 – $0.08

Stop: $0.004

 

Trending123 members receive access to the Trending123 Pattern Scan powered by Recognia free as part of their membership.


Article printed from InvestorPlace Media, http://investorplace.com/247trader/3-penny-stocks-to-watch/.

©2014 InvestorPlace Media, LLC

Comments are currently unavailable. Please check back soon.