If you’re a regular reader of this column, then you’ll know I typically begin by touting the benefits of using technical analysis to cut through the market’s noise. One doesn’t even need to be an expert. If you can get yourself acquainted with just a few simple metrics – two or three favorite Japanese candlestick set-ups, for example – then you may find that the task of managing your investments becomes a lot less daunting.
The following list includes some stocks my team and I found using our own favorite technical analysis tools. As always, you should be sure to conduct your own due diligence to ensure that they’re the right fit for your portfolio. But we hope these ideas will help spark your knowledge further and help you along your investment journey.
Some of the set-ups I describe below may no longer be relevant or intact as of the time you read this article. Please conduct your own due diligence. Many stocks mentioned here were also discussed in the Peter Leeds Newsletter. Peter may own shares in some of the investments mentioned, in which case that fact will be clearly indicated. Please note that penny stocks are notoriously volatile.
I’m liking Powerbridge Technologies Co., Ltd. (PBTS) right now for its excellent line-up of oscillators, including a relative strength index (RSI) at 29.83, stochastic %K (14, 3, 3) at 6.09, momentum (10) at -0.14, and Williams Percent Range (14) at -88.29. All of these figures suggest that the stock is oversold and point to a Buy signal for investors. At its current price of $1.74, this is definitely one to investigate.
Amesite Inc. (AMST) is looking very intriguing right now on the back of its RSI of 29.43, which indicates that it’s strongly oversold, as well as the plethora of Doji candlesticks in its charts lately. Dojis, which look like crosses, typically suggest indecision on investors’ part. After a brutal 40% fall in prices over the last month, this could be just what the doctor ordered for AMST.
The oscillators and moving averages for ThermoGenesis Holdings, Inc. (THMO) are pointing to Buy, with the latter looking especially bullish at the moment. After hitting $2.20 levels in January and March of this year, the stock may also be heading for a Multiple Bottoms pattern. Should its prices drop to those levels again, then we may see a revival in THMO’s fortunes.
As of the time I was writing this article, Farmmi, Inc. (FAMI) had an ultra-low RSI of 21.40. On top of that, after taking a huge tumble on the back of its public share offering, prices had almost immediately gapped back up 9% on high trading volume – a very good sign that FAMI should recover quite significantly in the days and weeks ahead.
I’ve talked about Flexible Solutions International Inc. (FSI) before due to its strong fundamentals and potential. This time, however, my interest in it has been piqued by its technical set-up, with several consecutive perfect and near-perfect White Marubozu candlesticks suggesting a strong Buy signal for the stock. I therefore wouldn’t be surprised to see the price rise by at least a dollar or more in the short term.
Penny stocks are volatile and can generate catastrophic losses. Price levels in this article are hypothetical and do not represent buy recommendations or investment advice. Keep in mind that it’s your responsibility to make trading decisions through your own skilled analysis and risk management.
Peter Leeds is the author of several books, including the international bestseller, “Penny Stocks for Dummies.” He and his team also issue a newsletter devoted exclusively to penny stock picks and analysis, as well as a popular YouTube channel PeterLeedsPennyStocks.