I'm seeing a lot of artificial influences on the economy right now, including low interest rates and the statements made by Fed officials and various politicians. It can be hard to keep track of all that noise, not to mention the company-specific specific news that may affect the investments in your portfolio.

It's for that reason that many investors skip straight to technical analysis, which can help them find profitable trades without poring over conference call transcripts and newspapers for hours every day. In this month's column, my team and I have narrowed down five penny stocks with promising set-ups. However, make sure to watch them carefully and move quickly (and even put a stop-loss price range in place), as these patterns can sometimes change or fail without any notice.

Some of the set-ups I describe below may no longer be relevant or intact as of the time you read this article. Please conduct your own due diligence. Many stocks mentioned here were also discussed in the Peter Leeds Newsletter. Peter 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.

Galecto, Inc. (GLTO)

I'm surprised that Galecto, Inc. (GLTO) is trading so low at the moment, given some strong fundamentals. It has some intriguing technical signals on its chart, too, including a relative strength index (RSI) of 23.45, which suggests that a trend reversal could be on the way soon.

Share price performance of Galecto, Inc. (GLTO)

TradingView.com

Altamira Therapeutics Ltd. (CYTO)

Like Galecto, Altamira Therapeutics Ltd. (CYTO) is a biotech firm with a low RSI of 28.73, which is typically a bullish sign. It also has a slightly imperfect hammer candlestick on its charts recently, which could suggest that the time is ripe for the stock to see higher prices ahead. If you don't see this trend reversal materializing at the beginning of October, however, I'd probably consider the signal to have failed and would exit the position ASAP.

Share price performance of Altamira Therapeutics Ltd. (CYTO)

TradingView.com

Team, Inc. (TISI)

Team, Inc. (TISI) has had a remarkable fall year-to-date, losing more than 70% of its value over that time. However, the technical signals could be implying that the stock has reached bottom and that capitulation is near. My favorite signal, the RSI, is at 28.95, implying that the stock is oversold. Furthermore, the market appears to be losing certainty in its bearish thesis on the stock, with some doji (or cross-shaped) candlesticks appearing on the charts over the past month.

Share price performance of Team, Inc. (TISI)

TradingView.com

Audacy, Inc. (AUD)

Audacy, Inc. (AUD) had an almost perfect bullish marubozu candlestick appearing on its charts as of the time I was writing this article, underpinned by fairly good trading volume. This, plus some very good oscillators and excellent moving averages (as measured by TradingView.com), leads me to believe that Audacy stock will see a positive price trend in the near term.

Share price performance of Audacy, Inc. (AUD)

TradingView.com

TuanChe Limited (TC)

If you're a thrill-seeker looking for massive volatility, then search no further than the Chinese penny stocks. TuanChe Limited (TC) drew my eye because of its perfect white marubozu candlestick as of the first day of October, which is an extremely bullish sign. I note, however, that trading volume is on the lower side, so be sure to make yourself scarce if the trade isn't going the way you expected.

Share price performance of TuanChe Limited (TC)

TradingView.com

Penny stocks are volatile and can generate catastrophic losses. Price levels in this article are hypothetical and do not represent buy recommendations or investment advice. Keep in mind that it's your responsibility to make trading decisions through your own skilled analysis and risk management.

Peter Leeds is the author of several books, including the international bestseller, "Penny Stocks for Dummies." He and his team also issue a newsletter devoted exclusively to penny stock picks and analysis, as well as a popular YouTube channel PeterLeedsPennyStocks.