As I said in one of my most recent videos on the Peter Leeds YouTube channel, we're witnessing an important historical moment right now – and maybe not entirely for the reasons you might expect.

I'm calling it: the stock market is currently in the midst of the biggest speculative bubble I've ever seen. Bigger than the Dutch tulip mania, the California gold rush, and the dotcom bubble. And when this bubble bursts, the after-effects may be the harshest investors have seen in their lifetimes.

In these challenging times, a familiarity with the tools of technical analysis can be invaluable for zeroing in on profitable stocks and knowing the best time to enter and exit your position. Below, my team and I have come up with a few ideas for you to explore. 

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.

YRC Worldwide Inc. (YRCW)

Transportation company YRC Worldwide Inc. (YRCW) has a very interesting chart at the moment, with a multiple bottoms pattern around the $1.40 to $1.50 levels, suggesting the stock is due for a big upturn. In fact, that upturn may already be happening, so in my opinion, it may be wise to move quickly with this one.

Chart showing the share price performance of

Houston Wire & Cable Company (HWCC)

As of the end of June, Houston Wire & Cable Company's (HWCC) chart appeared to be sporting a bullish (or white) Marobuzu candlestick pattern, which looks like a rectangle without any wick at its top or bottom. In my opinion, this may signal that the stock's period of discontent (with a 48% loss in value year to date) is finally coming to an end.

Chart showing the share price performance of Houston Wire & Cable Company (HWCC)

36Kr Holdings Inc. (KRKR)

I don't know anything about Chinese communications firm 36Kr Holdings Inc. (KRKR), and it probably isn't a long-term hold. But I did notice an inverted hammer in the last days of June that could indicate a bullish trend reversal for the stock after a 52% year-to-date loss. I do also note, however, that 36Kr Holdings' moving averages over one day (as of June 30, 2020) were broadcasting a Strong Sell, so I would be extra-careful with this one.

Chart showing the share price performance of 36Kr Holdings Inc. (KRKR)

ICL Group Ltd. (ICL)

One of my favorite technical indicators, the relative strength index (RSI), is currently signaling that Israeli chemicals company ICL Group Ltd. (ICL) is extremely oversold and may be on the verge of a positive trend reversal. I believe that we could easily see shares move up by at least a dollar over the month of July.

Chart showing the share price performance of ICL Group Ltd. (ICL)

Siebert Financial Corp. (SIEB)

Admittedly, at $5.24, Siebert Financial Corp. (SIEB) isn't technically a penny stock. (Only equities priced at $5-and-under can be called by that name.) But it's close enough, and a bullish falling wedge pattern as of the end of June is compelling me to bend the rules just a little this time. Given that the falling wedge is typically followed by a trend reversal, and Siebert Financial is down 35% over the quarter, we might see the stock's fortunes picking up over the month of July.

Chart showing the share price performance of Siebert Financial Corp. (SIEB)

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.