If you were looking at some of the penny stocks today, what were you looking at? Were you focused on headlines? Were you looking for disclosure statements? Maybe you were interested in upcoming results or earnings. On the other hand, maybe it was something unrelated to fundamentals, entirely.
When it comes to looking for top penny stocks to buy, today you can also use technical analysis to zero-in on opportunities. One of the clearest signs of interest is volume; more specifically high volume. Penny stocks are volatile enough as it is. When you throw in above-average levels of market activity, that can heat things up exponentially.
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If this is something that you’re interested in, let me give you some criteria to use. First, find a place that will give you access to some sort of stock screener. It might be on your trading platform already or it might be somewhere else on the web. Some platforms might not allow you to sort for volume. If you’re looking for penny stocks on Robinhood, for instance, they’ll give you sector breakdowns so it might take longer to put together a full list. Instead, one of the quick and easy ways of finding high volume penny stocks is simply setting your price limit to $5 or less, then sorting by volume on any simple scanner.How To Find Penny Stocks To Buy Using Volume
Find the stocks that are experiencing above-average or “unusual” trading volume. You can do a deeper dive from there to pick apart the companies that interest you the most. Find the ones with clear, strong trends.
It also doesn’t hurt to look for companies that have or had recent developments. Obviously, there’s more than one way to find penny stocks to buy. But for a quick and easy option, that’s one example.
You should also understand that volume alone doesn’t mean you found the best penny stocks to trade. You’ve got to consider what created that volume. Was it heavy buying or heavy selling, and what was the catalyst behind that, if any? Again, this all boils down to taking time to do your research. With this in mind, here’s a list of high volume penny stocks that could be on the radar for traders this week.High Volume Penny Stocks To Watch: T2 Biosystems Inc.
T2 Biosystems Inc. (TTOO Stock Report) has been one of those penny stocks that quietly mounted a big move this year. Thousands of traders have chased the 1-day, 200% breakouts. Sometimes they’re successful, sometimes they aren’t but 100% of the time, higher volatility generally equals higher levels of stress. TTOO stock, on the other hand, has experienced a move of more than 550% between mid-March and the end of August, which much choppiness to the downside.
If you look at the penny stock’s chart, you’ll see that, for the most part, TTOO stock has ridden the 50 Day Moving Average while the price has moved higher over the last 5 months. Shares even rose as high as $2.31 during that time. This isn’t to say T2 hasn’t been a volatile penny stock to watch. You can clearly see, however, that each pullback has been to a relatively higher low during that period.
We highlighted this company at the top of the week, last week as President Trump’s comments on plasma stocks resonated across the market. T2’s FDA-cleared and CE-marked T2Dx® is a diagnostic system capable of running tests directly from whole blood. After things settled down a bit, TTOO found footing around the 50DMA once again.
What’s behind this week’s unusual volume? T2 announced that the FDA issued Emergency Use Authorization for its COVID-19 molecular diagnostic test, the T2SARS-CoV-2™ Panel. Considering the surge of trading momentum after the closing bell on Monday, TTOO could be on the list of penny stocks to watch heading into September.High Volume Penny Stocks To Watch: BioCryst Pharmaceuticals Inc.
BioCryst Pharmaceuticals Inc. (BCRX Stock Report) is another one of the high volume penny stocks to watch after Monday’s trading. Closing out the month of August, BCRX stock saw its highest volume day since June 26th.
This came after the company’s latest update. BioCryst said Monday that the FDA granted orphan drug designation for its oral Factor D inhibitor, BCX9930. The treatment is for paroxysmal nocturnal hemoglobinuria. This is a disease that causes red blood cells to rupture.
This designation now qualifies BCX9930 for various development incentives like tax credits, waivers, and potential market exclusivity after approval. If you’ve followed this developing story, you’ll remember that the Administration granted BCX9930 Fast Track designation earlier this month. In general, BioCryst has been focused on BCRX as a coronavirus penny stock. Mainly, the company’s BCX4430 (galidesivir) has become a key point of focus for traders.
That came into the conversation today as well. In another update, BioCryst reported that it entered into a contract with the National Institute of Allergy and Infectious Diseases to advance the development of galidesivir. Aggregate funding under the contract could total up to $43.9 million if all contract options are exercised. BCRX stock has come a long way since it first hit our list in mid-November of 2019. At the time it was trading around $1.50 and had just reached its 52-week low. The focus was on its RAPIVAB treatment for influenza. Will these latest developments act as additional catalysts in September?High Volume Penny Stocks To Watch: Northern Dynasty Minerals Ltd.
Northern Dynasty Minerals Ltd. (NAK Stock Report) has been in the news cycle for a while now. After racing to new highs of $2.49 in July, shares have been sliding back ever since. A lot of the concern had to do with its Pebble Mine in Alaska. Specifically, news reports by Politico suggested that the Trump Administration was planning to block the proposed mine. Pebble refuted the statements. It said it believes “the implication pushed by Politico that the White House is going to kill the project is clearly in error likely made by a rush to publish rather than doing the necessary diligence to track down the full story.”
However, there was a letter from The Army Corps of Engineers demanding environmental mitigation measures be made. The Corps made “factual determinations that discharges at the mine site would cause unavoidable adverse impacts to aquatic resources and, preliminarily, that those adverse impacts would result in significant degradation to those aquatic resources,” according to the letter to Pebble Limited Partnership, dated Aug. 20.
However, after the dust had settled, NAK stock has begun picking up in volumes once again. Recently, Pebble Limited Partnership issued a statement. In the statement, not only did the company continue refuting inaccuracies from certain publications, it also cited the Washington Examiner. The Examiner confirmed that the U.S. Army Corps of Engineers’ letter to the company on Aug. 20, 2020, is the “guiding policy” on the project. “We have confirmation of what we have known for some time – the policy position regarding Pebble comes directly from the Alaska District and it is exactly what we have been telling the media and other stakeholders all week.”
As this story continues to unfold, is this higher volume indicative of brighter days ahead for NAK?