These Penny Stocks Are Racing To New Highs Before August But Will That Last?
One of the biggest risks of investing in penny stocks or even trading them is volatility. If you’re new to stocks under $5, volatility is why you’re here. It’s the source of those big swings you’re probably looking for. The biggest thing to remember is that this type of movement needs to be studied closely. Low float penny stocks, for instance, tend to move more erratically than stocks with much larger share structures. In addition, if you find certain penny stocks that are moving swiftly, you’ll want to find out why it’s moving so aggressively.
Blindly buying penny stocks without understanding the catalyst can be dangerous. Sometimes these cheap stocks can explode on simple rumors. There’ve even been instances of completely false information published by certain websites in the past. We saw this first-hand a few months ago. Regardless of the fact, knowing if it’s a news catalyst, sector catalyst, or general hype can help you determine how long you plan on being in a trade. The biggest thing I want to emphasize here is that FOMO shouldn’t be a reason you buy penny stocks.
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Fear of Missing Out on a breakout is one of the biggest reasons people shy away from penny stocks in the first place. They get caught up in the hype, don’t have a plan, don’t research, and simply buy based on emotion. Put simply, even if you “miss out,” by now I hope you see that there are hundreds if not thousands of other choices out there when it comes to penny stocks. With this in mind, these names are surging at the end of July. Will that be sustainable in August? Do you think these should be penny stocks to buy now or avoid?
Peny Stocks To Buy [or avoid]: Precipio Inc.
Precipio Inc. (PRPO Stock Report) has been climbing for the last few months. While average trading volume has been lighter than some of the other penny stocks we’ve watched, the PRPO stock price has risen . Since hitting lows of $0.55 in April, price has jumped as high as $2.10 and currently trades around $1.50. Similar to Revive, Precipio has experienced certain “events” around major moving averages. In this case, PRPO stock has seen support along its 50 day moving average, but also resistance around its 200 day moving average. If you look at the chart, you’ll see that it has failed to hold levels above its 200DMA numerous times that it tested that level.
This week, however, there’s a bit of a convergence between these two moving averages. Volume has also picked up and Precipio just released some notable news. On Thursday, the company announced it entered into an agreement with ADS Biotec to distribute its FDA-authorized COVID-19 serology antibody tests. These recently received Emergency Use Authorization. Distribution of the product will take place in the US as well as in other markets worldwide, according to the company.
It’s important to keep in mind that momentum has definitely built. There is a difference between an antibody test and actual diagnostic tests. Generally speaking, diagnostic tests are designed to detect current infections of the novel coronavirus, while antibody tests are designed to detect past infections. Each has its place in the lifecycle of the pandemic spread. In any case, this news seems to have sparked some attention and PRPO has once again tested that 200DMA level. Will this latest catalyst see things finally put this level in the rearview mirror or is another slide setting up to take place?
Penny Stocks To Buy [or avoid]: HTG Molecular Diagnostics
HTG Molecular Diagnostics (HTGM Stock Report) began surging in the afternoon on Thursday. the penny stock hit a low of $0.605 during the morning session. However, heading into its afternoon session, HTGM stock spiked to initial highs of $0.6779. It has been on the radar since late-March so I’m sure many readers are familiar HTG Molecular. The company could be gaining attention in sympathy with coronavirus stocks. The company had investigated the host immune response to SARS-CoV-2 and found it could facilitate the treatment of COVID-19.
In the case study*, the company pointed out:
“The results of this study suggest an immune imbalance in response to SARS-CoV-2 viral infection where low levels of interferons reduce a cell’s ability to limit viral replication and the activation of less-specific immune response promotes inflammation. Given this dynamic, treatments for COVID-19 have been more focused on controlling the body’s inflammation response. The study by BlancoMelo et al., is the first of its kind to describe the transcriptional response to infection by SARS-CoV-2. The HTG EdgeSeq AutoImmune Panel was specifically designed to monitor the body’s transcriptional response to disease that activate the body’s immune response…the HTG EdgeSeq Autoimmune Panel has the potential to function as an important tool in understanding the body’s response to viral infection including SARS-CoV-2.”
There hasn’t been any other news released on Thursday. HTG’s last update was on July 28th regarding its launch and immediate availability of its HTG EdgeSeq Pan B-Cell Lymphoma Panel in the United States and Europe. Without any further news, is this latest surge the beginning of a new uptrend or just a brief blip on the radar?
Penny Stocks To Buy [or avoid]: iBio Inc.
We haven’t covered iBio Inc. (IBIO Stock Report) in a few weeks. That was thanks to the fact that IBIO stock price broke above $5 and left the land of penny stocks. Regardless, IBIO stock is no stranger to a watch list or two. It has been on the list since last December. The recent pullback gives us an opportunity to take another look at it.
Now, I’m sure you are seeing the same thing right now and that’s lack of new information in the news feed of iBio. But given the fact that coronavirus penny stocks are getting a lot more attention right now, it could be some speculative momentum right now. Most recently iBio has focused on a COVID-19 vaccine. Something else that has brought much more attention to the company is joining the Russell 200 and Russell 3000 Indexes.
At the end of June, IBIO stock attracted attention from analysts. The penny stock gained interest from Alliance Global Partners. The firm initiated coverage with a Buy rating. It also announced a price target of $2.75. Considering that IBIO stock price is much higher than that, should we expect a revision? Furthermore, with IBIO trading back at the $5 threshold, will August see the penny stock leave this price level once and for all or are new lows coming for it? Leave a comment below if IBIO is on your list of penny stocks right now.