Top Rated Penny Stocks To Watch 2018
Penny stocks can be a great source of profit for day traders. Penny stocks have high intra-day volatility, low levels of analyst coverage and explosive growth potential.
The recent US tax reforms are forecast to provide a significant boost to the type of small businesses that seek equity financing outside of the traditional markets. In addition, the blockchain and cryptocurrency boom that is likely to dominate 2018 will see many small crypto companies seeking financing, and not all them will choose the ICO route, which will make for some exciting action in the small cap equity sector.
While 2018 promises to be a boom year for trading penny stocks, sifting through the huge number of penny stocks that are out there can be a long and arduous process. That is why we have brought you our list of the top 3 penny stocks to watch in 2018.
Viking Therapeutics, Inc. ($VKTX)
$VKTX went public in April of 2015 at $8.50, and then reached its top at around $10 per share less than a month later. The downtrend that followed found its support at a little under $1 per share in November of 2016, followed by an impressive bullish double bottom reversal in the middle of 2017.
The buying power of $VKTX then skyrocketed during September of 2017, and lifted the stock to the end of the year high of $4.40 per share. $VKTX has been consolidating its gains within a narrow band at the start of 2018, and is set to reach back into original areas of support that were broken early on around $5.75 per share.
Long Blockchain, Corp. ($LBCC)
$LBCC was formerly known as Long Island Iced Tea, Corp., but changed its name to reflect its expansion into blockchain technology. It originally rallied to a high of $15 per share back in February 2015, which was followed by a dramatic sell-off that found support around $3.50 per share in the middle of 2016.
It then broke down in September of 2017 and dropped into the historical low of $1.70 per share, right before its name change led to a blistering rally into the mid teens that tested its historical highs during pre-trading. By the start of the regular session the stock was back into the single digits and has been slowly pulling back ever since.
Technical analysis indicates that its continued decline into the low single digits should lead to a rapid retracement at around the $3.55 per share level. If $LBCC can manage to maintain a position in the high single digits, then it may soon qualify for access to traditional equity markets, which could be a further boon to its rapidly rising stock price.
Ladenburg Thalmann Financial Services, Inc. ($LTS)
$LTS originally rallied to its 15-year high of $4.50 per share back in October of 2014, and then began its decline that saw low after low before finally bottoming out at $1.63 per share back in November of 2016. $LTS then rebounded into its range resistance around $3 per share a little less than a month later, and had been gradually and persistently declining to its new low of $2 per share reached in May of 2017.
In October it recently broke out of these lows and has been erratically crossing resistance levels on both sides around its November 2015 high of $3.30 per share. It is expected that a quick spike through the final resistance of $3.60 should see it break out into trading at new multi-year highs.
Final Thoughts
Just like with any type of trading or investing, you have to manage your risk according to your trade management plan. Penny stocks can be extremely volatile so make sure you understand where your exits and entries are before getting into to a position.
We like the stocks above for both technical and fundamental reasons so make sure add them to your list for penny stocks to watch in 2018!