Just like the overall markets in 2020, biotech penny stocks are on fire!
A ton of low-priced stocks are running. Many are riding the pandemic hype train that popped up this year.
This week’s list of biotechs includes companies developing potential coronavirus vaccines, potential cancer treatments, and merger and acquisition news.
And listed stocks aren’t the only ones getting attention — five OTC biotech penny stocks made my list this week…
With so many hot stocks in this insane market, it can be overwhelming. How do you know which stocks to trade?
It’s my honor as a teacher to help you learn to spot the best opportunities. That’s why I put together this list of hot biotech penny stocks to watch.
But remember, these are stocks of small developmental companies — some may not even have a product on the market.
So don’t buy into the hype. Stay focused on the catalyst, pattern, and your trading strategy.
Let’s get to the top biotech penny stocks list and I’ll show you what’s on my radar and why…
Top Biotech Penny Stocks to Watch
These are the top stocks on my watchlist. ‘Watch’ is the key word here. There’s no guarantee that there’ll be a trading opportunity. Remember, these stocks move FAST.
Before we get to my list of stocks to watch, here are a few of my top resources for penny stocks…
- If you’re new to penny stocks, start here with this FREE online guide.
- Ready to learn how to build your own stock watchlist? This post is for you.
- Find out how I find all the stocks on my watchlists here.
How do I find hot stocks? I use StocksToTrade every day. For me, it’s the best tool because I helped design it specifically for trading penny stocks. (I’m also an investor.) It has awesome charts, built-in scans, social media feeds, and so much more to help you do your research.
And its Breaking News Chat add-on feature is a game-changer in this hot market. It’s helped me make record profits in 2020.* Get a StockToTrade 14-day trial for only $7, or get it with the Breaking News Chat for only $17!
(*Please note: My results are far from typical. Individual results will vary. Most traders lose money. I have the benefit of years of hard work, dedication, and experience. Trading is inherently risky. Do your due diligence and never risk more than you can afford to lose.)
Now, let’s get to the top biotech penny stocks to watch this week…
Biotech Penny Stocks #1: Cleveland BioLabs, Inc. (NASDAQ: CBLI)
CBLI is a biotech company that focuses on developing therapies to stimulate the immune system.
On December 24, the stock broke out above a multi-month resistance area in the $3.50s. I’ll watch this stock for potential continuation. The stock has spiked big in the past but rarely holds its highs.
Biotech Penny Stocks #2: Xenetic Biosciences, Inc. (NASDAQ: XBIO)
On December 9, XBIO announced its partner company had positive data from a Phase 3 trial of its treatment for anemia in patients with kidney disease.
The stock soared on high volume. Then the company announced an offering of just under 2.5 million shares at a price of $2.45 per share the following day. The offering has since closed, and the stock could bounce from its lows in the $1.70s.
Biotech Penny Stocks #3: Ampio Pharmaceuticals, Inc. (NYSE: AMPE)
This stock was on last week’s biotech penny stocks to watch list. It was running on positive highlights from the Phase 1 clinical trial of its intravenous treatment for respiratory inflammation caused by the coronavirus.
It has since had a big first red day from its highs at $3. It’s still trading high volume and could bounce.
Biotech Penny Stocks #4: Ocugen, Inc. (NASDAQ: OCGN)
Ocugen spiked on high volume on December 22 after it announced it was partnering with another company to develop a coronavirus vaccine.
But the big move was the following day when it gapped up over $1 from its previous close.
Biotech Penny Stocks #5: Medicenna Therapeutics Corp. (NASDAQ: MDNA)
MDNA develops and commercializes products for the treatment of different cancers and tumors. The stock is trading higher than average volume recently.
There’s a multi-month breakout level at $4.80 and $5. If the stock can get over the $5.30s, it would be a new all-time high for the stock.
5 OTC Biotech Penny Stocks to Watch
Biotech Penny Stocks #1: Organicell Regenerative Medicine, Inc. (OTCPK: BPSR)
Last month BPSR provided an update on its Phase 1 and 2 clinical trials for its potential treatment for coronavirus.
The company recently became compliant with SEC reporting requirements when it filed its first quarterly report in three years.
Biotech Penny Stocks #2: Vaxil Bio Ltd. (OTCPK: VXLLF)
VXLLF is a Canadian biotech company that’s developing a coronavirus vaccine. The company recently announced it hired a marketing firm to increase investor engagement.
The stock has a clear resistance area at 20 cents. I’ll watch for a breakout above that level or its all-time high of 25 cents.
Biotech Penny Stocks #3: CytRx Corporation (OTCQB: CYTR)
CYTR has an agreement with another company to receive future royalties and milestone payments on sales of its treatment for Niemann-Pick disease type c.
On December 7, that company announced it was expanding its U.S. presence … That could mean increased income for CYTR.
The stock had a breakout over the previous resistance area of 85 cents, and it’s been running ever since. Since it recently had three big green days in a row, I’ll watch this for a morning panic dip buy opportunity.
Biotech Penny Stocks #4: Enzolytics Inc. (OTCPK: ENZC)
In September ENZC announced a non-binding letter of intent to merge with another company. Since then the stock has traded higher than average volume and has gone from a sub-penny stock to around 7 cents per share.
Biotech Penny Stocks #5: Northwest Biotherapeutics, Inc. (OTCQB: NWBO)
NWBO is a biotech company developing immune therapies for cancer. On September 1, the company announced it closed its acquisition of another company that develops a system to improve the manufacturing of cell therapy products to treat cancer.
Since the news was released the stock went from 40 cents to a high of $2.50. It’s currently trading around $1.70. I’d be watching for a breakout pattern above $2.50.
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I’ll say it again … The stocks on my watchlist aren’t an automatic buy. Remember to do your own due diligence and research. If you’re trading without a trading plan, you’re gambling. Don’t be a degenerate gambler — trade smart!
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Conclusion
Biotech penny stocks are stocks of small, developmental companies. These companies are usually desperate for cash. They need it to continue developing products and for testing and trials. Trade them with caution…
They’re known to be extremely volatile. They can have huge price swings. One minute they’re flying high on positive news — the next they’re down due to bad trial results, side effects, or stock dilution.
If you’re prepared to take advantage of the price swings, these stocks can offer great trading opportunities…
In my Trading Challenge chat room, my students and I talk about the hottest penny stocks. Most of my top students are moderators in the chat. They’re there to answer questions, share their opinions, and help out new students
If you want to join a community of top traders, apply for my Trading Challenge. I don’t accept everyone. I only want the most dedicated students who are willing to put in the time and effort it takes to become my next millionaire student. Could it be you?
What do you think of these biotech penny stocks to watch? Let me know in the comments … I love to hear from you!
The post Top Biotech Penny Stocks to Watch — December 30, 2020 appeared first on Timothy Sykes.