If you’re looking for good penny stocks to buy right now, what are you looking for? I’m sure momentum is one thing and maybe, news is another. But what about chart patterns? Is technical analysis part of your strategy?
Many traders will look at charts to determine which, if any, are good penny stocks to buy. While some traders will look for a continuous or consistent uptrend, others will look at different things. One of them is a sign of a reversal.
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Reversal stock charts are those that show a turnaround in trend. Sometimes traders will consider these simply as “bottoming out patterns” but there are also many other reversal chart patterns to consider.Penny Stock Chart Patterns
An example of a reversal penny stock chart pattern might be a double top or double bottom. In these instances, a stock chart reaches its resistance point twice (double top) or its support level twice (double bottom). I’m simplifying these a bit and you can read more in the link provided.
Each of these patterns suggests that the underlying trend has begun to stall – I.E. double top means the uptrend is stalling. You can also look at other patterns like a head and shoulders or reverse head and shoulders. There are also continuation patterns like a cup and handle or bullish and bearish pennants. While I won’t get into the details of how to read penny stock charts, I will emphasize technical analysis does have its place in due diligence.
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Furthermore, there are simpler patterns that just focus on support and resistance levels. In these cases, traders look at previous levels of support and resistance to get a feel for what “could” be in store. In any event, let’s take a look at a few charts today. After looking at them, you can decide for yourself if they’re good penny stocks to buy right now or avoid for a bit.Penny Stocks To Buy [or avoid]: Akers Biosciences Inc.
First on this list is Akers Biosciences Inc. (AKER Stock Report). Shares of the company’s stock have maintained a consistent trend over the last month or so. That trend hasn’t been bullish but rather very bearish. After reaching highs of $6.84 on August 17th, AKER stock started to slide.
During the last few weeks, the penny stock ended up reaching a low of $2 (so far). Is it the end of the road for AKER? Well, a look at Tuesday’s activity might have some traders second-guessing things a bit. In its first bullish day since mid-August, AKER stock rallied over 16% to highs of over $2.60 on September 8th.
While there hasn’t been any news from the company this month, the surge in COVID cases in certain parts of the world remain a key focus. In August, its partner, Premas Biotech reported positive proof of concept results from Animal Studies of its SARS-CoV-2 vaccine candidate. The company said that the immune response and safety milestones met in this study were encouraging. Christopher Schreiber, Executive Chairman of Akers, stated, “We are currently moving towards enhanced dialogue with regulatory bodies in both India and the United States and look forward to communicating updates with our investors in the near term.”
That was the last update from the company. What does the chart look like? If you check out the 6-month chart, you’ll see that AKER stock reached a pivotal level that was previous support back in March. AKER also filled the gap made previously that month as well, following Akers’ big, 3-day move from around $2 to over $8.80. Considering the timing of this momentum and lack of any updates, could this simply be a speculative move after the company’s last update?Penny Stocks To Buy [or avoid]: Zosano Pharma Corp.
Zosano Pharma Corp. (ZSAN Stock Report) is no stranger to big moves. However, the last few weeks, ZSAN stock’s latest “big move” has been a downward one. Since reaching highs of $1.96 on August 20th, ZSAN has slid to lows of $1.30 this month. The initial drop came after the company’s announcement of a proposed public offering. When the offering was announced, shares of Zosano’s stock were trading around $1.60. However, the offering price was closer to $1.31 based on the structure of the deal.
So, of course, ZSAN stock ended up dropping as is the case with many discounted financings. If you remember way back when we first started covering Zosano, the penny stock had just reached a new 52 week low in February. It saw a brief stint of bullish trading and ended up pulling by a bit further to around $0.41. Considering where it was and where it is now, you could say, overall, the last 6 months have been strong for ZSAN stock.
The company’s Qtrypta was the center of focus this year. It’s a microneedle patch under development for the acute treatment of migraines. The patch was also in focus as a potential use in COVID-19. Zosano wrote on its website that “Zosano is eager to rise to the challenge of responding to the COVID crisis by collaborating with vaccine developers to provide the first microneedle vaccine for at home application.”
If you take a look at its chart, you’ll see that ZSAN’s recent $1.30 lows line up with a previous level of support in late December as well as a previous level of resistance in March. With an upcoming presentation at the H.C. Wainwright conference next week, it will be interesting to see if this new momentum signals a reversal from the last few weeks of ZSAN’s downtrend or not.Penny Stocks To Buy [or avoid]: AIM ImmunoTech
Another popular penny stock to watch this year was AIM ImmunoTech (AIM Stock Report). The general trend has been sideways for the majority of the year. However, that doesn’t mean AIM stock hasn’t experienced some excitement. At the start of the year, AIM stock traded around $0.60 and ended up jumping to highs of over $7 by early March.
Since then, the penny stock has come back down to trade above $2.50 for most of the 2nd and 3rd quarters. However, during the period from July 20th to this week, AIM has been in somewhat of a free-fall. Shares dropped from over $4 to under $2 ($1.60 to be exact).
We’ve seen several coronavirus penny stocks stumble during recent weeks. Needless to say, the company has pressed on. Last week AIM presented at the LD 500 Virtual Conference and will participate in another virtual panel this week. It’s titled “New Approaches to COVID-19: Hidden Breakthroughs” and will happen Wednesday afternoon.
A few weeks back, AIM announced that it identified an effective in vitro model at The Institute for Antiviral Research at Utah State University. This was for testing its Ampligen candidate. The results show that Ampligen was able to decrease SARS-CoV-2 infectious viral yields by 90% at clinically achievable intranasal Ampligen dosage levels. AIM said that this result supports its goal of developing an intranasal prophylactic approach using Ampligen to prevent COVID-19.
From a technical perspective, AIM’s chart also shows some interesting levels. If you take a look all the way back to last September, you’ll notice that levels around $1.50-$1.60 were previous support before AIM stock gapped down in October. Furthermore, this area has remained a consisted point of support and resistance for the majority of this year. Considering the recent uptick in momentum, is this another pivot for AIM to reverse its recent downtrend?Penny Stocks To Buy [or avoid]: BioDelivery Sciences International, Inc.
BioDelivery Sciences International, Inc. (BDSI Stock Report) is the 4th on this list of penny stocks. Ironically, it too has experienced a significant downtrend since mid-August. Shares reached a high of $5.45 on August 14th and have since been in a slide.
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What’s interesting is that BDSI stock has tested the same $3.66/$3.67 low 3 times since the end of August without breaking lower (so far). If you take the chart back out to August of 2019, you’ll see that this is an identical area of support BDSI stock sat at before making its big push at the end of last year. In fact, shares managed to climb as high as $7.21 before the year’s end.
This month, BioDelivery is set to present at two industry conferences. First, next Monday, the company presents at the H.C. Wainwright Global Investor Conference. Shortly following that, BioDelivery presents at the Cantor Fitzgerald Global Healthcare Conference.
The commercial-stage pharmaceutical company focuses on treatment for patients living with chronic conditions. Its portfolio includes utilizing its proprietary BioErodible MucoAdhesive (BEMA®) technology aimed at addressing important unmet medical needs including chronic pain and opioid-induced constipation.