Will The Names On This List Of Penny Stocks Rally Higher This Week?
One of the most important things to keep in mind about penny stocks is that investors can make massive returns from only a small investment. On the other hand, that can work against investors as well. Since these stocks generally trade below $5, it’s possible to buy a large number of them for a small amount of money. Furthermore, because of the low price, these cheap stocks can be very volatile.
If they move up even a little bit, even pennies, then the investor could stand to make a big return. Likewise, if the share price decreases even by a little bit, investors could be looking at losses of 30% or more within the matter of a few seconds.
One of the best ways of discovering these stocks is by keeping track of penny stocks that are gaining momentum. You can track indicators like simple daily volume or by looking at other things like the MACD or RSI indicators, for instance. Here is a list of penny stocks that have gained momentum lately and could be on watch heading into the second half of this week.
Penny Stocks To Watch:
BioCyst Pharmaceuticals
The first penny stock to watch in this regard is that of BioCyst Pharmaceuticals (BCRX – Stock Report). We discussed this penny stock earlier this week after having surged during early trading on Tuesday. It showed impressive momentum and generated notable gains so far this week.
On Tuesday, it emerged that there has been an outbreak of an infectious disease in China due to the coronavirus. That has raised prospects of BioCyst and other vaccine-related stocks getting bigger opportunities to help with the situation.
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Hence, there was a lot of optimism around BCRX stock this week. It gained as much as 22% at one point. BioCyst ended the day with gains of 5.4%. As far as the rest of the week is concerned, something to pay close attention to is the trading volume of BCRX. Can it continue at above-average levels and will it test new highs before Friday?
Penny Stocks Gaining Momentum:
TherapeuticsMD
The other penny stock that gained significant momentum on Tuesday is TherapeuticsMD (TXMD – Stock Report). The company is involved in the women’s health space, but the reason behind the rally is thought to be linked to the fact that JP Morgan has taken a substantial position in the stock. The news seemed to fire up the penny stock as investors piled on to it after learning that the global banking giant has taken a position.
TXMD stock rallied by as much as 24.5% as it gathered excellent momentum. That same sentiment continued on Wednesday as shares continued higher. As far as things to watch here, there are certain technical levels to be aware of.
The 200-day moving average line is right around $3. Typically, this level tends to become important as technical traders will watch and see if it acts as a potential resistance for the latest move. It might be something to keep in mind if TTXMD stock is on your watch list this week.
Penny Stocks Gaining Momentum:
Nio, Inc.
Next, it was the stock of Chinese electric vehicle manufacturer Nio Inc (NIO – Stock Report) that gained momentum yesterday. It continued to record gains for the 9th straight trading session and Wednesday marked #10.
The company’s impressive delivery data boosted sentiment in the market. In addition to that, the news that the company is all set to raise fresh capital has been the major factor behind the remarkable rise in the NIO stock in 2020.
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Yesterday, it made further gains of over 10% and had emerged as one of the stocks to watch this week. Nio announced this morning that it plans to build 200 brick and mortar stores this year. This includes “Nio Houses” and “Nio Spaces.” Its “Nio Houses” are essentially clubhouses for Nio customers and has workspaces, libraries, kitchens, and even living rooms.
Penny Stocks To Watch:
Ra Medical
One of the other active penny stocks on this list is Ra Medical (RMED – Stock Report). On Tuesday, the company announced that the United States Food and Drug Administration granted it the approval to begin an investigational device exemption for one of its products.
It will be used to evaluate the efficacy of the DABRA excimer laser system, which is going to be deployed in an atherectomy device to treat peripheral vascular stenoses. The development led to a rally in the stock, and RMED stock gained 20%.
Similar to TXMD, RMED stock has also begun to approach a 200 day moving average level in the stock. Can it push through this major technical level or will it slide back down. It will be important to pay close attention to trading volume and general market momentum if this is on your watch list.
Penny Stocks To Watch:
Neurotrope
Finally, Neurotrope (NTRP – Stock Report) comes onto this list of penny stocks after releasing big news this week. On Tuesday the company announced it regained compliance with Nasdaq. This update alone helped boost shares of the penny stock. However, on Wednesday the company reported that it had completed an analysis of data from its recent Phase 2 clinical trial. The trial looked at Alzheimer’s disease patients treated with Byrostatin-1, the company’s lead Alzheimer’s treatment.
“Due to the baseline imbalance observed in the study, and because a clear signal of benefit could be observed in the raw data from the pre-specified Moderate Stratum, we conducted a post-hoc analysis using paired data for individual patients, with each patient as his/her own control,” stated Kazem Kazempour, Chief Executive Officer of Amarex, Inc., the biostatistician retained to analyze the data from the 203 study under the SAP.
As a result, the company was awarded $2.7 million from the National Institute of Health to support another Phase 2 clinical study that focuses on Moderate Stratum. The company saw improvement in this in its 203 study. Will this momentum continue throughout the week? Shares have skyrocketed to highs of over $3.20 and NTRP stock is up over 155% so far this week.
