3 Penny Stocks To Watch This Week
We’ve got a brand new week to find penny stocks to trade. One of the most important things you can do on the weekend is to take time to research. While all of the DD in the world can be unwound with a single piece of news, the general consensus among traders is to focus on your list of penny stocks to watch. If one or two don’t pan out, you still have others on the list to watch.
How Do You Research Penny Stocks To Buy?
Like I said, one of the best ways to start is getting a list of penny stocks together. But how do you actually go about finding names to add to that list? While there’s no magical recipe, you can use a few technical indicators, news & filings, as well as overall market sentiment to find some penny stocks to add to your watch list. Here are some of the top ways people look for penny stocks:
- Penny stocks with above-average volume
- Most volatile penny stocks
- Sector penny stocks (IE. if given sectors have a growing interest, look at related stocks)
- Penny Stocks with news, expected news, or filings. Note that “expected news” refers to upcoming earnings, FDA results, and the like confirmed by a company. NOT what someone on social media says as “expecting news”.
- Penny stocks moving during premarket and/or post-market sessions.
- Penny stocks with technical chart set-ups
These are definitely not all of the ways to research penny stocks to buy. But there are some of the most frequently used. At the very least, you can track down some penny stocks to watch for an upcoming session or week of sessions as we are at the start of a new week right now. Just remember, you’re here to make money with penny stocks. While we’ve seen a ton of these stocks under $5 race well-beyond that limit.
So it’s not hard to get caught up in the hype and momentum of certain stocks. As we’ve said in the past, no one ever went broke by taking profits off the table. If the trend is strong enough, investors can always jump back into a winning trade or hold a core position to trade around. Either way, don’t forget to secure gains (however much) when stocks are breaking out. With this being said, let’s take a look at a few to watch at the beginning of the week. Will they be the best penny stocks to buy or should you keep looking?
Penny Stocks To Watch #1: Digital Ally Inc. (NASDAQ: DGLY)
Digital Ally Inc. (DGLY Stock Report) has been one of the penny stocks to watch, off-and-on since last August. Waves of momentum have come and gone. But most recently starting in April, DGLY stock was one of the more active penny stocks to watch.
When we began taking a closer look at the penny stock in April, the company came out with news related to coronavirus. Specifically, the company announced it has partnered with Trust Think Products, LLC, the exclusive distributor of the Danolyte® disinfectant. While this may have turned heads for the “flavor of that time period,” the bigger story has come about in June.
Obviously we’re seeing riots boom across the country. One of the biggest targets is use of police force on civilians. Digital Ally and other companies like them have started to catch some added attention. Digital Ally’s business model has everything to do with video recording products for law enforcement, emergency management, and the like. Something happened late last week that we helped shed some light on. It wasn’t any news update nor was it related to a filing. It was, however, direct exposure from a regional news network discussing Kansas City securing over $2 million for bodycams for its police.
Of course, DGLY saw a surge of momentum late-Friday. Since there was no update from the company so far, this is something to keep in mind. Why? generally speaking, any traders looking for headlines would have likely missed this Kansas City news feature. Since early April, DGLY stock has climbed over 190%.
Penny Stocks To Watch #2: Oasis Petroleum Inc. (NASDAQ: OAS)
Last week saw a surge of interest in oil and gas penny stocks. The sector has been searching for some level of support ever since the massive drop experienced earlier this year. With OPEC set to hold a meeting over the weekend the biggest thing to consider was the outcome of the meeting. Well, it has now been confirmed the Saudi-led OPEC agreed with Russia and other allies to extend production cuts till July.
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Assuming that this was the outcome oil and gas stock traders were expecting, we’ll need to see the general reaction on Monday. Was the momentum a build up to a “buy the rumor/sell the news” scenario or will the outcome continue to fuel gains for oil and gas penny stocks? Oasis Petroleum (OAS Stock Report) has benefited so far. Since early April when we first began covering OAS stock, shares have seen a slow but steady climb. However, considering that a year ago, this was trading above $5, there’s still a long way to go.
Regardless, OAS stock has remained one to watch. This week we’re seeing Oasis much differently compared to a few months ago. At that time, there was another weekend meeting planned that ended in quite the bearish surprise for oil and gas prices. Needless to say, OAS stock has managed to climb from around $0.37 to highs of $1.30 this past Friday. Considering what’s happened this weekend, will it be on your list of penny stocks to watch on June 8th?
Penny Stocks To Watch #3: Akari Therapeutics Plc (NASDAQ: AKTX)
Believe it or not, Akari Therapeutics Plc (AKTX Stock Report) was one of the most active penny stocks to watch last summer. Since then, we’ve seen a few small breakouts here and there but, in general, trading volumes have been much lighter in 2020. That hasn’t meant that AKTX stock hasn’t been one to watch, however. If you look at the chart, you’ll quickly see that after reaching 52-week lows of $0.87 in March, the penny stock started its rebound. As of Friday, AKTX stock reached a high of $2.69; up over 200% from those March lows.
What’s helped drive momentum? Let’s take a look at some of the more recent events during that recovery period and then discuss why AKTX could be on a list of penny stocks to watch this week. After closing on a $9.5 million private placement and reporting earnings that weren’t very impressive nor unimpressive, the real uptrend began.
Akari announced it achieved the primary and secondary endpoints for nomacopan in its fully recruited Phase II trial in Bullous Pemphigoid Disease. In addition to this, the company was issued a positive opinion on its application for orphan designation of nomacopan for the treatment of bullous pemphigoid, by the European Medicines Agency.
This week AKRX could be in the spotlight again. This comes as the company previously announced this year that it’s anticipating to report additional data at the European Hematology Association Annual Congress. In January, the company said that nomacopan was used to treat 14 patients with paroxysmal nocturnal hemoglobinuria (PNH) across four trials. This includes Phase II, Phase III, PNH eculizumab resistant study, and PNH long-term safety and efficacy study. Additional interim Phase III data is expected during the Congress, according to the company in its January press release.