4 Penny Stocks to Watch

Remember that volatility goes both ways--up and down

   

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 bullish 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).

Continuation Diamond

5 1 13 zero 300x192 4 Penny Stocks to WatchSave the World Air (OTC:ZERO)

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 diamond’s boundary lines, it marks the resumption of the prior uptrend.

Volume: 384,365

Target Price: $1.28 – $1.36

Stop: $0.81

Continuation Wedge

5 1 13 pzoo 300x190 4 Penny Stocks to Watch
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Pazoo
(OTC:PZOO)

After a temporary interruption, the prior uptrend is set to continue. A continuation wedge represents a temporary interruption to an uptrend, taking the shape of two converging trendlines, both slanted downward against the trend. During this time, the bears attempt to win over the bulls, but in the end the bulls triumph as the break above the upper trendline signals a continuation of the prior uptrend.

Volume: 227,200

Target Price: $0.04

Stop: $0.008

Symmetrical Continuation Triangle

5 1 13 copy 300x187 4 Penny Stocks to Watch
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Copytele
(OTC:COPY)

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

Volume: 265,647

Target Price: $0.34 – $0.36

Stop: $0.16

Diamond Bottom

5 1 13 maxd 300x188 4 Penny Stocks to Watch
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Max Sound Corp.
(OTC:MAXD)

The price seems to have reached a bottom, showing signs of reversal as it has broken upward after a period of uncertainty or consolidation. The diamond bottom 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 a significant reversal to a new uptrend.

Volume: 252,432

Target Price: $0.48 – $0.52

Stop: $0.22

 

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Article printed from InvestorPlace Media, http://investorplace.com/247trader/4-penny-stocks-to-watch/.

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