Examining Penny Stocks with Technical Analysis for April 2022
Technical analysis (TA) involves the careful study of a stock’s chart patterns and trends. Although this set of skills may seem daunting at first, even beginners can incorporate a few select TA methodologies into their investing strategy to great success. TA can be especially helpful when predicting the movements of penny stocks because of their volatility—provided there is enough trading volume to back up the patterns you’re trying to find.
Below, you’ll find a list of some penny stocks with interesting technical setups. Remember to move quickly and exit your position if the stock isn’t behaving how you expect it to, because this may mean that the trend or signal has changed or failed.
Some of the setups described below may no longer be relevant or intact as of when you read this article. Please conduct your own due diligence. Many stocks mentioned here were also discussed in the Peter Leeds newsletter. Leeds may own shares in some of the investments mentioned, in which case that fact will be clearly indicated. Please note that penny stocks are notoriously volatile.
New Stocks to Watch
Accelerate Diagnostics, Inc. (AXDX)
The past year has been a bad one for shareholders of Accelerate Diagnostics, Inc. (AXDX), with the stock losing nearly 85% of its value during that time. However, a relative strength index (RSI) hovering around the 29.50 level indicates that Accelerate Diagnostics stock is oversold, which means that it could see a rebound in the short to medium term. Multiple doji and spinning top candlesticks over the past few days of March could also suggest investor indecision—a bullish sign for Accelerate Diagnostics.
Chimerix, Inc. (CMRX)
On the last day of March, Chimerix, Inc. (CMRX) recorded an inverted hammer candlestick on its trading charts, underpinned by strong volume. Then, on the first day of April, prices were up 6% as of the time this article was being written, which suggests that the bullish pattern is being confirmed and the stock may see much higher prices from this point forward.
Savara Inc. (SVRA)
The double bottom pattern on Savara Inc.’s (SVRA) chart seems to be coming to fruition, after the stock hit the $1.05 level in mid-March and proceeded to climb from there to its current price of $1.34 as of the time this article was being written. If Savara is able to inch up past the $1.35 resistance level, then we could see it climbing to ever higher heights over the month ahead.
Orla Mining Ltd. (ORLA)
When a white marubozu candlestick pops up on a company’s chart, as was the case on April 1 for Orla Mining Ltd. (ORLA), then investors can consider it a bullish signal that the stock’s newly higher prices should continue to summit for at least the short term. Note too that if you see a white marubozu candlestick during a downturn for a stock, it can bode well for a near-term positive trend reversal.