3 Penny Stocks Making A Continuous Rally This Week: What’s Next?
Most penny stocks represent small companies with years to go before growing. They may also represent companies that got hit hard and are trying to come back. Regardless, the point is that all stocks, including penny stocks, carry risk.
So an investor needs to watch the market closely and be aware of the latest moves made by different penny stocks. They also need to understand that penny stocks can be pushed by sector news. Furthermore, in the case of a few penny stocks, other factors like a “Trump Tweet,” can trigger a buying frenzy (or sell-off).
Once you have the basics under your belt, it’s time to start by putting a list of penny stocks together. On that note, here is a look at three penny stocks that are gaining momentum this week. But can they continue to push higher through the month?
Healthcare Penny Stocks To Watch
Sorrento Therapeutics (SRNE)
The first on this list of penny stocks is Sorrento Therapeutics Inc (SRNE Stock Report). The company made a major announcement on Tuesday that resulted in the rally in the stock throughout the week. The company announced that it has reached a sales agreement with JPM Securities to sell its common stock and raise as much as $75 million.
The money raised is going to be used for general expenses, clinical trials, new technology and repayment of debts. It is a significant development and one that could see the company conducting its business with far more freedom. Naturally, the stock experienced a major bump as well and since the announcement, it has climbed by 25% from lows of $1.91 on Oct 2 to highs of $2.39 on Friday.
Something to keep in mind is that volume continues at an above-average pace. Furthermore, SRNE stock chart is showing a candlestick pattern considered to be “A Hammer.” There are both bullish and bearish hammer patterns to consider. Take a look at some of the penny stocks basics information on PennyStocks.com and online to learn more about candlesticks.
Pot Penny Stocks To Watch
Pot Penny Stocks To Watch #1: Green Growth Brands (GGB) (GGBXF)
The other penny stock that has displayed excellent momentum lately is Green Growth Brands (GGB) (GGBXF Stock Report). In the past, this pot penny stock had stated that it’s looking to rapidly increase the number of its Seventh Sense stores. The company is apparently now on track to have as many as 200 stores by the end of the year.
At this point in time, Green Growth Brands operates as many as 150 Seventh Sense stores spread across 35 states. This is a big development for the company. So it’s no surprise that the stock has rallied by 46% since the news broke. Something else to pay attention to, however, is what the pot penny stock did on Friday.
Though shares had gapped up in the morning to highs of $1.23, GGB stock has seen relatively lighter trading volume than it had previously. Volume is a simple indicator that depicts interest in a given stock.
Though I am not saying to buy or sell GGB, I am saying to pay attention to things like trading volume after such a move up. Could this momentum continue into next week or is Green Growth topping here?
Pot Penny Stocks To Watch #2: CV Sciences (CVSI)
One of the biggest gainers in the penny stock space this week has been CV Sciences Inc (CVSI Stock Report). CV has been one of the most dominant players in the CBD market with its hemp-based CBD products. On Tuesday it announced a distribution agreement with well-known department-store chain Harris Teeter.
“We are pleased to continue to grow distribution and availability of the PlusCBD™ Oil brand in the FDM channel through our distribution partnership with Harris Teeter.”
“CV Sciences has made significant distribution gains this year as FDM retailers such as Harris Teeter enter the hemp CBD market with a focus on making high quality, safe and efficacious products available to their shoppers. We see considerable opportunities to expand distribution of PlusCBD™ Oil as consumers and retailer demand for our products continues to increase.”Joseph Dowling, Chief Executive Officer of CV Sciences
It marks further expansion in its retail presence. Naturally, the stock rallied by as much as 75% since the news broke. This was from a new, 52-week low of $1.55 to highs of $2.71 on Thursday. But, like GGB, CVSI has had a tough go of it on Friday.
Sure, CVSI stock hit early highs of $2.66 but it was short-lived. Further to this point, trading volume was also relatively lighter. These are factors to keep in mind if this is one of the penny stocks adding to your watch list for next week.