4 Promising Penny Stocks

Will you make a bullish bet on these penny stocks?

   

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).

Double Bottom

5 29 13 lpth 300x257 4 Promising Penny Stocks
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LightPath Technologies
(LPTH)

The price seems to have reached a bottom after failing to break through a support level and ultimately rising higher in a sign of reversal to a new uptrend. The double bottom pattern forms during a downtrend as the price reaches two distinct lows at roughly the same price level. Volume reflects a weakening of the downward pressure, tending to diminish as the pattern forms, with some pickup at each low, less on the second low. It is common to see volume pick up again at the time of breakout.

Finally the price breaks upward above the highest high to confirm the bullish signal. A pullback after the breakout is usual for a double bottom.

Volume: 258,017

Target Price: $0.98 – $1.02

Stop: $0.75

Bullish Continuation Wedge

5 29 13 pzoo 300x258 4 Promising Penny Stocks
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Pazoo
(PZOO)

After a temporary interruption, the prior uptrend is set to continue. A continuation wedge pattern 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: 202,050

Target Price: $0.04 – $0.04

Stop: $0.01

Megaphone Bottom

5 29 13 gtso 300x259 4 Promising Penny Stocks
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Green Technology Solutions
(GTSO)

The recent broadening action tells us that trading has been out of control, but a breakout on the upside suggests we’re starting a more decisive uptrend. With its broadening price swings, the megaphone represents a market that’s unstable and out of control. It typically consists of two successively higher highs between three lower lows, and the reversal signal occurs when the price breaks up above the second peak (the highest high) as a sign of a more decisive bullish move.

Volume: 883,587

Target Price: $0.08 – $0.10

Stop: $0.02

Bottom Triangle

5 29 13 lqmt 300x257 4 Promising Penny StocksLiquidmetal Technologies (LQMT)

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: 3,804,543

Target Price: $0.11 – $0.12

Stop: $0.07

 

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

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