(investopedia.com) – By PETER LEEDS Updated Jan 29, 2021
I’ve always emphasized the value of research and education in investing wisely. In my opinion, now more than ever is the time to hone your knowledge of technical analysis and develop a set of analytic tools you feel comfortable using.
Luckily, you have a lot of resources at your disposal, including Investopedia and my own Peter Leeds YouTube channel. As retail investors continue to hop aboard the stock market, let’s show the pros how smart the “dumb money” really is.
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.
Interpace Biosciences, Inc. (IDXG)
There are big changes going on in the leadership of Interpace Biosciences, Inc. (IDXG), with former CEO and president Jack Stover announcing his retirement a few months ago. But for the purposes of this article, what interests me more is the bullish multiple bottoms pattern on Interpace’s stock charts, which already seems to have translated into a near-25% gain over 2021 so far.
Bullish moving averages and oscillators (including the awesome oscillator) may also be reason enough to investigate Interpace further. If the stock is able to break out beyond the $4.50 levels, then you may want to get ready for the stock to pop as high as it did back in October 2020. Keep your eye on this one.
Qudian Inc. (QD)
I know very little about Qudian Inc. (QD) and usually avoid China-based stocks, as the disclosure rules there differ from the ones used in Western countries. That said, if you’re reading this column about penny stocks, you’re probably not especially risk-averse! You may therefore want to check out Qudian right now, as both its simple and exponential moving averages (10, 20, 30, 50, 100, and 200) are sending an extremely strong Buy signal.
A.H. Belo Corporation (AHC)
The beginnings of a potential bullish Marubozu candlestick at the end of January bode well for A.H. Belo Corporation’s (AHC) future prices over the short term. Furthermore, I’m seeing strong Buy signals from the company’s moving averages (MAs). Thirteen of the fifteen MAs measured by TradingView.com are indicating Buy, and the oscillators are also looking good.
NanoViricides, Inc. (NNVC)
If the body of the candle that appeared on Jan. 28 was longer, then we’d be looking at a nice little morning star candlestick set-up for NanoViricides, Inc. (NNVC). What appears to be emerging instead, as of the time I was writing this article, was a similarly bullish Marubozu candlestick after a big gap up. I’m also liking NanoViricides based on its tremendously bullish simple and exponential moving averages.
Document Security Systems, Inc. (DSS)
Document Security Systems, Inc. (DSS) has had a rough go of it lately. However, if its relative strength index at 29.77 is any indication, this situation could improve significantly in the short term. A note of caution: while the oscillators are sending positive signals here, Document Security Systems’ moving averages are pointing to a Strong Sell, so be ready to abandon ship quickly if the stock begins to sink.
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.
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