This week’s top biotech penny stocks to watch fit some of my favorite patterns.
But that doesn’t mean I jump right into a trade.
I wait for the trade to come to me and watch for my trading indicators. I have seven I go over before taking any trade. (Learn more about them here.)
Trading isn’t just about buying a stock that’s up or one that has a high short interest so you can catch a short squeeze…
It’s about having a trading plan and a strategy. Then you must be disciplined enough to ignore everything else.
And always cut losses quickly if a trade goes against you. Never hold and hope a loser will turn into a winner.
Because these are stocks of small developmental companies — some may not even have a product on the market. Always expect the worst and you won’t be disappointed.
Let’s get to the top biotech penny stocks list. 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.
- Discover 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 helped me make record profits in 2020.* Get a StockToTrade 14-day trial for only $7…
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(*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: Ampio Pharmaceuticals, Inc. (NYSE: AMPE)
On Monday, AMPE announced early positive news from its Phase 1 trial. Its inhaled treatment is in clinical trials for treating lung inflammation caused by COVID-19.
The stock closed near its highs that day so I’ll watch for it to continue its momentum and break above the $1.85 resistance level.
Biotech Penny Stocks #2: Aerpio Pharmaceuticals, Inc. (NASDAQ: ARPO)
On January 29, ARPO had a big green day with over 10 million shares in volume. There’s no recent news about the company but the daily chart has a clear multi-day break-out level at $1.60.
Ideally, a catalyst will bring in more volume and push the stock higher.
Biotech Penny Stocks #3: VYNE Therapeutics Inc. (NASDAQ: VYNE)
On January 21, VYNE announced contract news, but the stock didn’t gap up until January 25. The following day, the company announced an offering of over 20 million shares at a price of $2.37 per share.
The stock has been downtrending since, due to the added supply and selling pressure. But then on Monday, the company announced the FDA approved a label update for its topical foam for skin conditions.
The news isn’t that great but the stock found support at $2 and bounced. It could have a bigger move if upward momentum creates a short squeeze.
Biotech Penny Stocks #4: Enzolytics Inc. (OTCPK: ENZC)
If you’ve been following this watchlist each week, you might remember ENZC from previous weeks’ watchlists. On Monday, the company announced it discovered new conserved target sites on the HIV virus.
I bought this stock near the close on Tuesday when it had a multi-day breakout over the $0.0265 high from January 27. I sold it so I could be prepared to catch dip buy opportunities in the morning, but I still made a profit of $323.*
I’ll watch for this stock for a gap up and more continuation.
Biotech Penny Stocks #5: iBio, Inc. (NYSE: IBIO)
IBIO was on my biotech watchlist last week after it gapped up on January 22 on this news. I was watching for it to break out above the $1.85 high.
It’s been consolidating all week and had a big green day on Monday and just barely broke above the $1.85 high to $1.88.
I’ll continue to watch for a breakout, but it needs high volume and, ideally, a news catalyst.
Biotech Penny Stocks #6: VBI Vaccines Inc. (NASDAQ: VBIV)
VBIV had its first green day on Monday. There’s no news about the company but it traded almost 30 million shares that day.
It broke above the multi-month high of $3.88 that day and got close to testing the next resistance level at $4.09. I’ll watch for the stock for continuation but I’d prefer if a catalyst was released.
Biotech Penny Stocks #7: Athersys, Inc. (NASDAQ: ATHX)
ATHX also had its first green day on Monday and had a breakout over multi-month resistance of $2.30.
I’ll watch for the stock to continue its upward momentum.
Biotech Penny Stocks #8: BioLineRx Ltd. (NASDAQ: BLRX)
BLRX was on my stocks to watch list on Friday. I’m watching for this stock to break out above the $3.30 range but it needs high volume and, ideally, a catalyst.
Biotech Penny Stocks #9: Midatech Pharma plc (NASDAQ: MTP)
On Monday, StocksToTrade Breaking News Chat reported the company released some patent news. It spiked in the afternoon after the news was announced.
I’ll watch for it to continue higher as the news spreads on more news sites.
Biotech Penny Stocks #10: Innovation Pharmaceuticals Inc. (OTCQB: IPIX)
On January 29, IPIX announced Phase 2 of clinical trials for its potential treatment for COVID-19 is scheduled to begin.
The stock had green days with high volume on Friday and Monday. It had a breakout over multi-month resistance of 30 cents. This stock’s a former runner so it could run for multiple days.
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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. And many top traders who got their start in the Challenge are now chat moderators who answer questions 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 — February 3, 2021 appeared first on Timothy Sykes.