Pay Attention to These 3 Penny Stocks

Technical chart patterns can guide you to trading opportunities

   

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).

Symmetrical Continuation Triangle

5 21 13 wddd 300x193 Pay Attention to These 3 Penny Stocks
Click to Enlarge
Worlds Inc.
(WDDD)

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:509,885

Target Price: $0.61 – $0.65

Stop: $0.36

Double Bottom

5 21 13 emxx 300x191 Pay Attention to These 3 Penny Stocks
Click to Enlarge
Eurasian Minerals
(EMXX)

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. Finally the price breaks upward above the highest high to confirm the bullish signal.

Volume: 305,690

Target Price: $2.12 – $2.20

Stop: $1.26

Bottom Triangle

5 21 13 aumn 300x191 Pay Attention to These 3 Penny Stocks
Click to Enlarge
Golden Minerals Co.
(AUMN)

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: 247,039

Target Price: $1.91 – $2.01

Stop: $1.31

Exciting news!  This Memorial Day weekend marks the launch of the first-ever Memorial Day Expo, and it’s guaranteed to be unlike anything we’ve done before.

This is your opportunity to save 50% off your Trader’s Advantage, Maximum Options, Slingshot Trader, Trending 1-2-3, Parabolic Options and more! All our financial advisors will be participating, so I hope that you will take advantage of this generous offer before the weekend is over.

This amazing half-off discount is our way of expressing our gratitude for your business, and for sharing the excitement for the profits that lie ahead as we come through one of the most remarkable investing periods in a generation.   This offer is only good for a limited time.  Full details available here.


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

©2014 InvestorPlace Media, LLC

Comments are currently unavailable. Please check back soon.