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2 Penny Stocks to Try

Look into these two names for potential upside


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 two bullish ideas from the Trending123 Pattern Scan powered by Recognia to get your research started. Both have volume over 200,000. These patterns are expected to play out in the intermediate term (six weeks to nine months).

Double Bottom

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Ibio Inc.

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: 591,831

Target Price: $0.62 – $0.64

Stop: $0.29

Bottom Triangle

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Anthera Pharmaceuticals

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: 1,366,297

Target Price: $0.77 – $0.81

Stop: $0.49

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 OpenParabolic 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.

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