There's no doubt that the year 2020 has been divisive for many of us, highlighting political and economic divisions all over the globe. But I think there's one thing we can all agree on: just about every one of us will be glad to say goodbye to 2020 and to welcome in the new opportunities, and fresh slate, of the year 2021.
I hope the following picks help you exit this difficult year on a good note and set you up for even better things ahead. I'll see you in January, with even more penny stocks to discover using technical analysis.
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.
Cyanotech Corporation (CYAN)
Fifteen out of the seventeen one-day moving averages tracked by TradingView.com are pointing to a Strong Buy signal for Cyanotech Corporation (CYAN) at the moment. These include the exponential moving average (5, 10, 20, and 30) and the Hull Moving Average (9). The long-term outlook may not be as sunny, but I'm expecting a surge in prices in the short term.
Bioceres Crop Solutions Corp. (BIOX)
Okay, Bioceres Crop Solutions Corp. (BIOX) admittedly isn't quite a penny stock at its current price of $5.84, but it's close enough. A white Marubozu candlestick for Bioceres may be indicating that the stock is set to climb much higher over the next week or so. That, combined with some non-technical analytics including excellent earnings per share (EPS) figures and a great P/E ratio (and, like Cyanotech, many positive one-day moving averages), leads me to believe that a new wave of shareholders may well have their eyes on Bioceres. Prices could accordingly skyrocket shortly.
Hepion Pharmaceuticals, Inc. (HEPA)
I'm drawn to Hepion Pharmaceuticals, Inc. (HEPA) owing to its relative strength index of 25, suggesting that it is oversold, and its bullish 5% gap upward – that is, directly after prices dropped off a cliff following the announcement of the prices of its public offering. Does this mean Hepion Pharmaceuticals may recover from its disastrous 2020, in which the stock fell 73% over the year? I'm looking for it to return to at least $2 per share in the short term. Failing that, I'd exit the position quickly.
RYB Education, Inc. (RYB)
A hammer candlestick at the end of November could be indicating that a bullish trend reversal is in the works for RYB Education, Inc. (RYB), after the stock suffered a devastating 55% loss over the past year. I note that this reversal may be short lived in the lead-up to the company's results announcement on Dec. 7, however, as traders appear to have soured on the stock for now and its moving averages are sending negative signals.
Concrete Pumping Holdings, Inc. (BBCP)
There are a few things I like about the technical set-up for Concrete Pumping Holdings, Inc. (BBCP) at the moment: the white Marubozu candlestick that appeared at the end of November, possibly presaging higher prices in December; and a good deal of moving averages sending out "Strong Buy" signals (including the Hull Moving Average  and Volume Weighted Moving Average ). If the stock drops below the candlestick's $3.47 support level, however, I would consider the signal a failure and exit the position immediately.
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.