Penny Stock Volatility Is What Makes Or Breaks A Trader’s Account & When They Drop, Investors Always Hope For A Big Recovery. Here Are Two Penny Stocks To Watch This Week
Investing in penny stocks can be a highly profitable endeavor for investors since even a small rise in stock price can mean significant profits. Therefore, millions of investors look for the best penny stocks to watch. While there are many such stocks, it’s obviously important to choose the right one. The best way to go about it is to watch the market closely and make a note of the penny stocks that are making moves.
But when penny stocks go up, those buying at the top might get stuck. This is especially true when penny stocks drop in price. Instead of cutting losses, some choose to buy penny stocks and hold them. The hope is to see the stock make a move back up. Here is a look at two penny stocks that have tried to make a recovery over the last few days.
Penny Stock To Watch #1: NIO Stock
Chinese electric vehicle manufacturer Nio Inc (NYSE:NIO) has been a big topic among traders recently. The stock rose by as much as 13.3% last Wednesday, despite there being no positive news with regards to the company. Nio has been in trouble this year due to declining sales and a gloomy outlook for the year. That outlook came directly from the company’s management.
Declining demand for electric vehicles in China, mounting competition and the cut in subsidies are expected to hurt NIO’s sales. However, the record-breaking deliveries from Tesla in its latest quarter have created optimism around NIO stock. It also has many bulls believing that the Chinese company could deliver similar numbers.
NIO stock has bounced back almost 33% from its mid-June low of $2.35. However, despite the recent comeback, NIO is still down 50% in 2019, It’s also down 70% from its 52-week high of $10.13. Do you think NIO continues heading back in the right direction in July?
Penny Stock #2: FCEL Stock
Energy company FuelCell Energy Inc (NASDAQ:FCEL) was a big topic last week on PennyStocks.com. FCEL stock may have had its share of ups and downs over the years, but the company’s shares flew last week. This happened after reporting highly positive performance data from a project in Incheon, South Korea.
At the power producing operation, FuelCell’s SureSource 3000 power plants managed to exceed targets by more than 20% over the course of a year. The stock soared by as much as 31% to close at $0.72 on Wednesday. It continued on as high as $1 and closed the week at $0.80. After these latest reports & market momentum, this could be a stock to keep an eye on in the coming week.
It’s important to note that, FCEL stock has gained a lot of momentum this week. Nevertheless, the stock is well off from its 52-week high of $17.52. Going forward, the stock could face a hurdle at its 50-Day moving average price of $1.25. So, keep these technical levels in mind.
