CYDY – What Are the Top Penny Stocks to Trade in February?
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The Dow Jones Industrial Average (DJIA) has rallied substantially since November 2020, after hitting a multi-month low. The rebound was exceptional, fuelled in large part by the passage of a $900 billion stimulus package, and the political trifecta: A Democratic-controlled Executive, Senate, and House.
Plus, there is increasingly bullish sentiment among traders, speculators, and investors. The Dow is hovering above the 50-day moving average of 30,376.40, and the 200-day moving average of 27,680.11. The performance of the NASDAQ composite index has been equally stunning, soaring from November lows to 13,610.54, well above the 50-day MA and the 200-day MA.
It looks like the bull run has plenty of gas left in the tank.
Recreational Traders Generate Maximum Volatility in Stocks
The recent hullabaloo around GameStop is a clear indication of the power of retail traders vis-a-vis speculation and stock prices. The lessons learned in this particular stock trading saga – pump and dump – are applicable to the market at large, particularly the impact it had on hedge funds.
The Reddit thread WallStreetBets went long on GameStop while hedge funds on Wall Street were shorting the stock. The net result? A tidal wave of recreational traders went bullish on the stock and it went through the roof, devastating the portfolios of hedge funds who bet against the stock.
While GameStop certainly is not a penny stock, it behaved in much the same way as a hot penny stock, with massive bullish sentiment driving up the price of the stock. Then, profit takers cashed in. It is against this backdrop that we explore the following penny stocks to watch in February 2021.
What Penny Stocks Are Hot This February?
Penny stocks are financial instruments which trade under $5 per share. The stocks typically trade over-the-counter (OTC), or as pink sheets. In February 2021, several ranking penny stocks have made headlines, notably Greene Concepts Inc (OTCPK: INKW), Alternet Systems Inc (OTCPK: ALYI), and Cytodyn Inc. (OTCQB: CYDY).
Greene Concepts Inc (OTCPK: INKW)
Greene Concepts Inc (OTCPK: INKW) is performing well above expectations, with a current price of $0.0720, substantially higher than the short-term moving average of $0.0062, and the long-term moving average of $0.0029. The stock is trading well above its upper Bollinger Band limit of $0.0527, indicating that downward pressure is likely to start being exerted.
As the stock continues to climb, profit takers will be cashing in on the inflated prices. This is a top stock to watch, probably because it features a hemp-infused beverage, known as Happy Mellow. The stock started its meteoric ascent on 25 January, 2021, after the announcement that Amazon would be selling one of its products named ‘Be Water’.
These are the type of market updates that have outsized impacts on penny stock prices. This news was boosted by an update – ‘Be Water’ completely sold out on its first day. The chart is reflective of all the fundamentals lining up – for the ultimate breakout. This type of pattern, listed above, is precisely how traders make handsome returns with penny stocks.
Alternet Systems Inc (OTCPK: ALYI)
Alternet Systems Inc. stock is enjoying a solid bull run in 2021. This February stock is currently trading around $0.067, 3 times higher than its 50-day moving average of $0.021, and 5 times higher than its 200-day moving average of $0.013. The momentum indicators for the stock indicate that it is approaching overbought territory, and due for a correction soon. Nonetheless, its meteoric ascent between January and February is worth taking note of.
This electric vehicles company (EV) is focused on retrofitting motorbikes with electric motors. The stock gained tremendous impetus halfway through January, when news of its ReVolt Electric Motorcycle sales permeated the markets. Barely a few days ago, on January 29, 2021, the company announced that it was in the final stages of planning for rideshare motorcycles. Of course, a stock like this can only be helped by news of an order of several thousand EV motorbikes for the Kenyan taxi market.
Cytodyn Inc. (OTCQB: CYDY)
Cytodyn Inc. (OTCQB: CYDY) is currently trading at around $6.22 per share, above the threshold of a penny stock, but close enough to warrant consideration in this guide. Note that it started its bull run as a penny stock, in mid-December, when it was trading around $2.50 per share. The price increased almost threefold since its mid-December value, with a period of consolidation in January, before a sharp uptick heading into February 2021.
This clinical-stage biotech company focuses on treatments for HIV. It was recently announced that one of its pharmaceuticals – Vyrologix has finished phase 2 clinical trials and can be used in the treatment of the novel coronavirus. This drug is now being reviewed by the FDA of the Philippines. There is enough interest in this company to warrant a closer look, and current price movements are reflective of a spike in interest since early December 2020. Incidentally, the spot price of CYDY is trading well above the 50-day moving average of $4.46, and the 200-day moving average of $3.87.
Momentum indicators such as the Ichimoku Cloud show positive expectations moving forward, with a green cloud ahead of the current stock price. This indicates strong bullish momentum as the price is above the cloud in the chart above. When the stock price falls below the cloud, it is deemed bearish moving forward.
These are but a handful of the leading penny stocks to trade in February 2021. It is always important to carefully assess the technical and fundamental elements of stocks before buying or selling.
Penny stocks, like other equities, can reverse on a dime. At the time of writing, these charts and prices were accurate. It is incumbent upon traders to conduct due diligence before trading for real money. Consider paper trading options to fine-tune your strategies.
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CYDY – What Are the Top Penny Stocks to Trade in February?