Top Biotech Penny Stocks to Watch — January 20, 2021

This week I have a list of 10 all-new biotech penny stocks to watch.

Many are making big moves without any kind of news. That’s because news isn’t the only catalyst that can move stocks, especially if they’re in a hot sector.

Short squeezes, low float stocks, technical breakouts, and patterns can all create huge moves.

But whatever the catalyst, you must have a trading plan and discipline. Always remember to sell into strength and don’t get greedy.

These are stocks of small developmental companies. Some may not even have a product on the market. So stay focused on the 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…

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Now, let’s get to the top biotech penny stocks to watch this week…

Biotech Penny Stocks #1: Lexicon Pharmaceuticals, Inc. (NASDAQ: LXRX)

OK, this stock isn’t technically a penny stock anymore … but it was last week. It had a huge day on January 14 when it broke out above $4.20 to a high of $9.40 on this news. It retraced back to the mid $6s and has now bounced to almost $8.

I outline these bounce plays in my “Pennystocking Framework” DVD. Now I’ll be watching the stock to break above the $9.40 high.

Biotech Penny Stocks #2: Akari Therapeutics, Plc (NASDAQ: AKTX)

Akari Therapeutics develops and commercializes therapies for inflammatory and autoimmune diseases.

On January 15 the stock had a breakout above the previous resistance of $2.50 to $2.75. There’s no news about the company, but it did present at two virtual conferences on January 11 and 14.

Biotech Penny Stocks #3: Seelos Therapeutics, Inc. (NASDAQ: SEEL)

This stock was in an uptrend from mid to late December before it topped out around $2 per share. It had a slight retracement to the $1.30s and started to bounce.

Then the company released some news … On January 15 it announced it dosed its first round of patients with an intranasal treatment for depression and suicidal tendencies. I’ll watch for the stock to continue to its recent high around $2 and a possible breakout above that level.

Biotech Penny Stocks #4: Synlogic, Inc. (NASDAQ: SYBX)

SYBX had a big gap up with high volume on January 13. There was no news released that day, but two days before, on January 11, the company released this update.

I’ll watch the stock to break above the high of $3.74 from January 13 and the high of $4 from November 25, 2020.

Biotech Penny Stocks #5: Cybin Inc. (OTCPK: CLXPF)

CLXPF develops psychedelic drugs to treat neurological conditions. The company is listed on a Canadian exchange as well as the OTC markets.

The stock was up 34% on January 15 with no news. But it did have a technical breakout over the previous high in the low $1.70s.

Biotech Penny Stocks #6: ObsEva SA (NASDAQ: OBSV)

OBSV was up 61% on January 15. Again, there was no news released about the company … The stock gapped up from the $2.50s to the $3.50s overnight and hit a high of $4.39 that day.

The stock also traded insane volume of 140 million shares — well over any volume the stock traded before. I’ll watch for the stock to consolidate and possibly break over the $4.39 high. I want to see the high volume continue and a news release would add conviction to any possible trade.

If you trade a stock with no catalyst, be conservative and aim for singles.

Biotech Penny Stocks #7: Acer Therapeutics Inc. (NASDAQ: ACER)

Acer works on developing therapies for a number of rare and life-threatening diseases.

This is another stock running with no news catalyst. On January 15, it traded higher than average volume and had a multi-month breakout over the $3.30 to $3.50 range. I’ll watch the stock for another breakout above $4.44.

Biotech Penny Stocks #8: InVivo Therapeutics Holdings Corp.(NASDAQ: NVIV)

NVIV has been trading on high volume since November 2020 when it found support around the 50-cent area.

On January 15, the stock broke out above the multi-month resistance of $1. As I mentioned in previous watchlist posts, breakouts over $1 can sometimes lead to more powerful moves as the stock shows up on more traders’ radars.

Biotech Penny Stocks #9: Aptorum Group Limited (NASDAQ: APM)

This stock had its first green day on January 15 — the same day it had a multi-month break out over $3.25.

The stock’s a former runner. It had a big one-day run back on September 29, 2020, when it opened in the $8s and went as high as $14.23. It could have another volatile move since it has a low float of just over 7 million shares.

Biotech Penny Stocks #10: Cannabics Pharmaceuticals Inc. (OTCQB: CNBX)

CNBX develops cannabinoid products for the treatment of cancer.

The stock is close to the multi-month breakout level of 35 cents and has a history of multi-day runs. Back in January 2020, the stock went from 10 cents to 60 cents. The company’s also in the weed sector that’s seeing renewed interest thanks to Biden’s election.

Get the List of Penny Stocks I’m Watching Delivered to Your Inbox

Want to know which stocks I’m watching each week? Subscribe to my no-cost watchlist. I’ll send my top penny stocks to watch right to your inbox every week. It can help you learn the process I follow for every stock.

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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! 

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