Top Biotech Penny Stocks to Watch — June 2, 2021

A mixed bag of news is driving this week’s biotech penny stocks…

I’m watching trial and research news, poster presentations at conferences, and a penny stock that was added to an ETF. Plus, a few stocks are moving on technical patterns.

And I have a few winners from last week’s list returning…

Learn a lesson from stock #5 and wait for your best trades to come to you. Then remember to sell into strength.

Too many traders got spoiled in the bubble market. They’ve learned bad trading habits like holding and hoping. That might’ve worked in the past, but it won’t get you ahead in different market environments.

If you think this market is slow I can assure you, it can get much worse.

So prepare and build your good habits now. Smart trading starts with building a watchlist, a trading plan, and always cutting losses when you’re wrong.

Here are the top biotech penny stocks I’m watching this week 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: Seelos Therapeutics, Inc. (NASDAQ: SEEL)

SEEL is a biotech that develops treatments for central nervous system disorders. Its lead drug candidate is a nasal spray to treat suicidal ideation in patients with depression.

Yesterday the company announced its stock was included in the Defiance Next Gen Altered Experience ETF. It’s the first U.S.-listed ETF that focuses on psychedelics.

Read the full press release here.

I’ll watch for the stock to break out of its channel over $3.50.

 

Biotech Penny Stocks #2: Brickell Biotech, Inc. (NASDAQ: BBI)

BBI develops potential treatments for skin diseases. It’s also working with another company to develop a COVID-19 vaccine.

Yesterday it announced Phase 3 study results from its partner company in Japan were published in the peer-reviewed Journal of Dermatology.

The stock traded higher than average volume following the news. But it has a history of spiking and not holding its gains. I’d swing for singles with this stock.

 

Biotech Penny Stocks #3: Lineage Cell Therapeutics, Inc. (NYSE: LCTX)

Lineage Cell Therapeutics, Inc. develops therapies for degenerative diseases. Yesterday it announced that two patients in its Phase 1/2 study showed retinal tissue restoration.

“Outer retinal layer restoration, which was observed using clinical high-resolution Optical Coherence Tomography (OCT), was evidenced by the presence of new areas of RPE monolayer with overlying ellipsoid zone, external limiting membrane, and outer nuclear layer, which were not present at the time of baseline assessment.”

Read the full press release here.

The stock had a huge gap up following the news. And it traded higher than average volume. I’ll watch to see if it can break out and continue higher. I’d like to see it get over its recent highs of $3.13.

 

Biotech Penny Stocks #4: Skye Bioscience, Inc. (OTCQB: SKYE)

SKYE develops cannabinoid therapies to treat infectious diseases.

There’s no recent news on the company. But on Friday the stock had a big green day on high volume. Yesterday it gapped up but faded. I’ll watch it to potentially hold support around 15 cents and bounce to the upside.

 

Biotech Penny Stocks #5: Atossa Therapeutics, Inc. (NASDAQ: ATOS)

ATOS develops medicines for the areas of oncology and infectious diseases.

On May 24, CEO Dr. Steven C. Quay presented his COVID-19 research to U.S. Congress members.

On May 27 the CEO published his research on whether the Wuhan Institute of Virology’s claims of zero cases of COVID-19 was statistically possible.

Read the report here.

The stock was on my watchlist for the last two weeks. I’ve been watching for the multi-day breakout over the $3.40 area. Yesterday it broke out and traded higher than average volume. I’ll watch for it to potentially continue higher, but I’ll wait for a dip-buy opportunity.

(Past performance is not indicative of future results.)

 

Biotech Penny Stocks #6: Vascular Biogenics Ltd. (NASDAQ: VBLT)

VBLT is a biotech company that focuses on developing cancer treatments.

The company will provide a poster update on its Phase 3 clinical trial for its potential ovarian cancer treatment at the American Society of Clinical Oncology (ASCO) Annual Meeting. The meeting runs from June 4–6.

It’s another stock from last week’s watchlist. I’m watching VBLT for a multi-day breakout over the $2.45 area. Ideally, I want to see more volume.

 

Biotech Penny Stocks #7: Iterum Therapeutics plc (NASDAQ: ITRM)

ITRM develops anti-infectives for drug-resistant pathogens.

On May 27 in after-hours, the company provided an update on the FDA’s review of its potential treatment for urinary tract infections.

The following day, the stock gapped up on high volume, then consolidated. It’s still consolidating, and I’m watching it for a breakout over the $1.60 area.

 

Biotech Penny Stocks #8: Cellect Biotechnology Ltd. (NASDAQ: APOP)

APOP develops regenerative therapies using stem cells.

There’s no recent news on the company and its trading lower than average volume. But it’s in a slow uptrend and has held up well. I’m watching it for a multi-day breakout over $3.50. It has a low float of fewer than four million shares, so it has the potential to run. Ideally, it will have a catalyst and high volume.

 

Biotech Penny Stocks #9: Tonix Pharmaceuticals Holding Corp. (NASDAQ: TNXP)

TNXP develops vaccines to potentially treat multiple diseases.

On May 26 it announced the company will be featured in a poster presentation at the 2021 American Society of Clinical Psychopharmacology (ASCP) Annual Meeting. The virtual meeting is being held from June 1–4.

Yesterday the stock had a multi-day breakout over $1.25. I’ll watch for more volume to potentially come in from the conference and push it higher.

 

Biotech Penny Stocks #10: Jaguar Health, Inc. (NASDAQ: JAGX)

JAGX develops treatments for gastrointestinal disorders.

Yesterday its wholly-owned subsidiary provided an update on its plans to market its proprietary drug in Europe.

Read the full press release here.

The stock had a multi-month breakout above $1.80 following the news. I’ll watch for it to potentially continue higher.

 

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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 top 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!

Disclaimers

*Please note that these kinds of trading results are not typical and do not reflect the experience of the majority of individuals using our products. From January 1, 2020, to December 31, 2020, typical users of the products and services offered by this website reported earning, on average, an estimated $49.91 in profit. This figure is taken from tracking user accounts on Profit.ly, a trading community platform. It takes years of dedication, hard work, and discipline to learn how to trade. Individual results will vary. Trading is inherently risky. Before making any trades, remember to do your due diligence and never risk more than you can afford to lose.

**Tim Sykes has a minority ownership stake in StockstoTrade.com.

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