What is a penny stock breakout?
Breakout Penny Stocks – What Is a Breakout Anyway? A breakout occurs when a stock’s price moves (rather violently) outside a defined resistance or support level. A support level is a price point which historically, a stock’s price has difficulty falling below. It’s like a bottom that refuses to budge lower.
How can you tell a penny stock breakout?
9 Signs that Penny Stock Is About to Rise
- Watch the money flows.
- Spikes in trading volume.
- See what management has done with previous companies.
- Their name, product, or industry keeps coming up.
- Bank on increasing market share.
- Welcome smaller slices of larger pies.
- Higher highs, higher lows.
- Watch professional investors.
What happens to penny stocks when they breakout?
Breakout penny stocks are the stuff of dreams for most day traders; when they occur, a simple trade can balloon into something spectacular. Often breakout penny stocks can deliver gains north of 800% on a solid day. But how do you spot them?
Are there penny stocks that pump and dump?
These are stocks that trade on all major exchanges. There are both bullish and bearish plays included. It’s important to be aware that while these trade on major exchanges, they still pump and dump. Naturally you need to be careful trading them and only trade the best penny stocks setups.
Is it safe to invest in penny stocks?
That’s why finding small cap stocks that trade on the major exchanges are going to be the safest bet. Avoid OTC and pink sheets, unless you are a professional. A penny stock is any stock that trades at $5 and under. Most of the sub penny stocks are not trading on major exchanges. As a result, they’re not subject to SEC regulations.
When do we post the penny stock watch list?
We post our free penny stocks list daily by 9 pm with a watch list of the best low to high float stocks between $0.30 – $10 that are potentially looking to do daily breakouts. These small caps are listed on the major exchanges.