3 Penny Stocks to Watch After a Death Cross Formed This Week
With so many penny stocks to watch right now, there is a lot for investors to understand. And recently, we witnessed a death cross in the stock market, which signaled major upsets for both penny stocks and blue chips. Because of this, let’s take a look at what a death cross is and how to take advantage of it.
What is a Death Cross in the Stock Market?
On Monday, the S&P 500 hit a ‘death cross’, which is an important concept to understand. A death cross happens when the 50-day moving average (MA) crosses below the 200-day MA on a chart of a particular stock or index. The term “death cross” is used because it is often viewed as a sign that the stock or index is about to experience a major decline in price. Many technical analysts believe that a death cross is a bearish signal that should be heeded.
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While a death cross can sometimes be a sign that the stock or index is about to experience a major decline, it is not always accurate. In fact, there have been several instances where the stock or index continued to rally after the death cross occurred.
For this reason, some technical analysts believe that the death cross should not be given too much weight when making investment decisions. Despite this, it is still important to be aware of when a death cross occurs and to understand the potential implications.
If you are thinking about investing in a stock or index that has recently formed a death cross, it is important to do your own research and understand how this will impact the penny stocks on your list. Recent big movers include Cenntro Electric Group Ltd. (NASDAQ: CENN), Color Star Technology Co. Ltd. (NASDAQ: CSCW), among others. With this in mind, let’s take a look at three penny stocks to add to your watchlist right now.
3 Penny Stocks to Add to Your Watchlist Right Now
- Fangdd Network Group Ltd. (NASDAQ: DUO)
- Clover Health Investments Corp. (NASDAQ: CLOV)
- BioNano Genomics Inc. (NASDAQ: BNGO)
Fangdd Network Group Ltd. (NASDAQ: DUO)
One of the biggest gainers during trading today is DUO stock. By EOD on March 16th, shares of DUO stock had shot up by over 53%. While it’s hard to understand why shares of DUO stock are climbing, we can look at some recent announcements.
Investors believe that DUO stock is climbing right now following a media report from the Chinese government that the nation’s financial stability and development committee are urging stability and cooperation with U.S. regulators. Aside from this, FangDD announced its Q3 2021 unaudited financial results a few months ago. In the results, the company announced that its revenue decreased by around 57% with a net off of $55 million.
“Impacted by the macroeconomic regulation and the tightening of mortgage loans, the real estate market has rapidly cooled off and credit risk for developers has been intensifying. We expect that new and resale property transactions will remain vulnerable to macro challenges for an extended period.”
The Co-CEO of FangDD, Mr. Yi Duan
While DUO stock is highly volatile, it is also a penny stock with a lot of movement. Because of this, it can be a good option for those who are looking to swing trade. Considering this, will DUO be on your list of penny stocks to buy?
Clover Health Investments Corp. (NASDAQ: CLOV)
Today, shares of CLOV stock shot up by over 8%. This brings its one month gain to more than 40%, which is no small feat. The most recent news from the company came on March 15th when it announced that the Talent and Compensation Committee of the Company’s Board of Directors granted inducement restricted stock unit awards to its new CTO and Joseph Martin, the General Council member.
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A few weeks before this, the company announced its Q4 2021 financial results. In the results, it posted revenue of $432 million. This is an increase YoY of more than 160%, which is quite a large gain. And, Lives under its Clover Assistant Management, increased by 223%.
“We are really excited about where Clover sits today and our prospects in the future. We are enabling physicians to provide great healthcare to all, especially those in underserved communities, and are pleased to see increasing focus from CMS on health equity.”
The CEO of Clover Health, Vivek Garipalli
This major gain reflects the company’s commitment to growth and the large moves it has made in the past year. As a result, CLOV stock could be worth adding to your penny stocks watchlist.
BioNano Genomics Inc. (NASDAQ: BNGO)
BioNano Genomics is a provider of genome analysis solutions. To understand if BNGO stock is worth it or not, we have to take a look at its recent moves and what the company does. On March 1st, the company announced its fourth quarter and full year financial results. In the results, BioNano stated that it brought in revenue growth of 111%, ending the year with Moore than $250 million in cash.
“We believe 2021 was transformational for Bionano. Not only did we achieve our publicly announced anticipated milestones for 2021, we added a world-class software product through the acquisition of BioDiscovery and significantly enhanced our software development expertise.”
The CEO and President of BioNano, Erik Holmlin, PhD.
For the full year, revenue came in at $18 million with $6.3 million for the fourth quarter. Over 2020, the company also reached installed base of 164 systems, which is a 69% increase. So, considering all of this, is BNGO stock worth buying or not?
Are Penny Stocks Worth Buying Right Now?
If you’re thinking about investing in penny stocks in 2022, there are a few things you’ll need to consider. The stock market can be a volatile place, and predicting the future is never an easy task.
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However, there are certain factors that can give you a better idea of whether or not stocks are worth buying right now. Understanding exactly how the stock market is moving and how to take advantage of penny stocks. This includes knowing how to trade and considering how what events are occurring right now. With all of this in mind, do you think that penny stocks are worth buying right now?
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