Penny stocks are great for speculative traders who have a little money to burn. The Trending123 Pattern Scan powered by Recognia has uncovered three bullish names going for just a few cents a share. All patterns identified happened on volume of at least 100,000 to help you weed out which penny stocks to buy and which ones to avoid.
Bottom Triangle: TapImmune (TPIV)
According to the bottom triangle technical pattern, biotech name TapImmune (TPIV) could nearly double in value in less than three weeks.
The bottom triangle tells traders that 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.
Target Price: $0.11 – $0.13
Pattern Duration: 19 days
Bullish Continuation Diamond: MEDL Mobile Holdings (MEDL)
The bullish continuation diamond pattern is indicating that MEDL Mobile Holdings (MEDL) could appreciate more than 30% higher in less than two months.
This pattern tells us the price has broken upward out of a consolidation period, suggesting a continuation of the prior uptrend. The pattern begins during a downtrend as prices create higher highs and lower lows in a broadening pattern. Then the trading range gradually narrows after the highs peak and the lows start trending upward. When the price breaks upward out of the diamonds boundary lines, it marks the resumption of the prior uptrend.
Target Price: 0.51 – $0.53
Pattern Duration: 54 days
Ascending Continuation Triangle: Ace Marketing & Promotions (AMKT)
An ascending continuation triangle shows us that Ace Marketing and Promotions (AMKT) could make an intermediate-term move up.
The increasingly higher lows and constant highs within this pattern tell us that buyers are more aggressive than sellers, confirmed by a breakout through a resistance level to signal a continuation of the prior uptrend. An Ascending Triangle, with its increasingly higher lows and constant highs, indicates that buyers are more aggressive than sellers. The pattern typically forms because a supply of shares is available at a certain price, represented by the upper flat line. When the supply depletes, the shares quickly break out from the top trendline and move higher.
Target Price: $0.62 – $0.64
Pattern Duration: 40 days
InvestorPlace advisor John Lansing tracks the charts all day and offers expert technical analysis in his day trading, options and trading services: Power Trading at the Open, Parabolic Options and Trending123. Trending123 members receive access to the Trending123 Pattern Scan powered by Recognia free as part of their membership. For more information on which service is for you click here.