There’s plenty of action driving this week’s biotech penny stock action — earnings, patent news, and a pending acquisition.
Then others have no news…
But that’s the great things about biotech penny stocks … They get pumped by BS press releases and news all the time. Any news can send these stocks soaring.
So I watch these stocks, but I wait for the perfect time to strike before taking a trade. I want all the indicators to line up — like pattern, catalyst, and volume, to name a few.
I want the trade to look so good that I can’t ignore it.
That’s how you let the best trades come to you. Don’t force trades, and especially in this market. Cut losses and take profits quickly. Protect your account at all costs!
Now, 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.
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Now, let’s get to the top biotech penny stocks to watch this week…
Biotech Penny Stocks #1: Osmotica Pharmaceuticals plc (NASDAQ: OSMT)
OSMT is a biotech company that develops pharmaceuticals for the treatment of ADHD, Parkinson’s, and muscle spasms.
The stock moved higher on Monday and reported fourth-quarter earnings yesterday. I’ll watch for the market’s reaction to the earnings report.
Biotech Penny Stocks #2: Immune Pharmaceuticals, Inc. (OTCPK: IMNPQ)
On Monday, IMNPQ announced it received an offer to purchase the company. The acquisition is pending the SEC’s approval.
Read the full press release here.
The stock had a huge gap up and morning spike before fading slightly. I tried to dip buy it on Monday, but I took a loss. Bounces haven’t been that great lately so I cut losses quickly. Yesterday the stock had a morning spike, which seems to be the pattern that’s working better right now.
The stock traded high volume so it could have the potential for more upside.
Biotech Penny Stocks #3: Relief Therapeutics Holding AG (OTCQB: RLFTF)
On Monday, RLFTF announced its Phase 2/3 trial met its primary endpoint.
The stock had a huge gap up following the news. It also traded higher than average volume. I’ll watch for dip-buying opportunities.
Biotech Penny Stocks #4: Oncolytics Biotech Inc. (NASDAQ: ONCY)
Last week, ONCY had two big green days on high volume. It’s consolidated since and held up well.
There’s no recent news on the company. I’ll watch for upside and break above $4 resistance.
Biotech Penny Stocks #5: Osmotica Pharmaceuticals plc (NASDAQ: SEEL)
SEEL is developing treatments for central nervous system disorders. It’s investigating psychedelics as a potential treatment for suicidal behavior in patients with depression.
I’ll watch for a breakout over $5 and a retest of the recent high of $5.89.
Biotech Penny Stocks #6: vTv Therapeutics Inc. (NASDAQ: VTVT)
Last week VTVT announced the U.S. Patent and Trademark Office granted the company a patent for its method for reducing hypoglycemia in patients with type 1 diabetes.
The stock has a history of spiking and not holding its gains. Trade this stock cautiously and sell into strength.
Biotech Penny Stocks #7: Novan, Inc. (NASDAQ: NOVN)
On Monday, NOVN filed a Form 4 showing an insider bought 70,000 shares at $1.43. Yesterday the stock spiked — but it’s a choppy stock.
I’ll watch for potential continued upside.
Biotech Penny Stocks #8: PolarityTE, Inc. (NASDAQ: PTE)
On Monday, PTE had a big green day ahead of earnings. I never try to predict earnings. I wait for the market to react, then make a trading plan if I see a pattern.
PTE announced fourth-quarter earnings in premarket yesterday. I’ll watch for more volume before planning a trade.
Biotech Penny Stocks #9: Verastem, Inc. (NASDAQ: VSTM)
VSTM is another stock with no news. But if we see a catalyst, I’ll watch for a breakout over the $2.50 area of resistance.
Biotech Penny Stocks #10: Moleculin Biotech, Inc. (NASDAQ: MBRX)
Yesterday MBRX announced it received fast track designation for its treatment of lung metastases.
Read the full press release here.
The stock gapped up following the news but faded. I’ll watch for dip buys into big panics.
Get the List of Penny Stocks I’m Watching Delivered to Your Inbox
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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!
The post Top Biotech Penny Stocks to Watch — March 31, 2021 appeared first on Timothy Sykes.