Blue chips and big tech stocks gained more ground than small caps and penny stocks in February, but political events have kept this market corner chock-full of speculative fervor. Most importantly, the Trump administration backed off from aggressive attacks on biotech and pharmaceutical pricing practices, allowing many junior biotech stocks to attract significant buying interest
|Symbol||Company||Mar. 1 Price|
|GSV||Gold Standard Ventures Corp.||$2.61|
|ZSAN||Zosano Pharma Corp.||$2.65|
|WRN||Western Copper & Gold Corp.||$1.48|
|NAKD||Naked Brand Group Inc.||$2.16|
|ATRS||Antares Pharma Inc.||$2.51|
|EYEG||EyeGate Pharma Inc.||$2.60|
|CGNT||Cogentix Medical Inc.||$2.11|
|CSBR||Champions Oncology Inc.||$3.54|
Precious metals also booked strong results, with gold futures rising nearly 4% to a 3-month high; while the silver contract posted even stronger gains, rallying more than 7% to its highest high so far in 2017. Even so, this speculative group still has a long way to go to overcome selling pressure in reaction to higher inflation expectations and an accelerating Federal Reserve rate hike schedule.
Look for economic data and public policy to drive March’s penny stock price action. Concerns that President Trump’s infrastructure and tax reform initiatives may not roll out on an aggressive schedule has weighed on financial and raw material plays in recent sessions, so progress with those initiatives could draw capital off the sidelines and underpin the high levels of speculation needed for this market niche to prosper.
March’s watch list includes eight new entries; while retaining two picks that could post additional upside or are still grinding through bullish breakout patterns. These new and recurring picks have popped to the top of market scans that search for unusual market strength in penny stocks, with a second visual filter seeking narrowly-defined breakout or pullback levels that favor lower-risk trade entries.
The top penny stocks for March 2017 are:
Gold Standard Ventures Corp. (GSV) ended a vertical buying impulse at $3.05 in May 2012 and rolled over, entering a decline that finally bottomed out at 26-cents in July 2015. A recovery wave into 2016 caught fire, generating a summer rally into 4-year resistance, followed by a rounded trading range that’s still in play more than six months later. A February buying spike lifted price into the top of the range, completing a multi-year cup and handle breakout pattern that predicts an uptrend targeting $6.00 to $8.00.
GSX rolled over with a weak precious metals market in the first two weeks of March and tested short-term support between $2.00 and $2.25. As of March 13, it’s just bounced off a 5-day basing pattern, signaling a possible higher low, ahead of a rally back to the breakout level at $3.00.
MobileIron Inc. (MOBL) peaked at $12.96 in August 2014 and dropped a trading range that broke to the downside in April 2015. Bears kept control into the September 2015 low at $2.81, ahead of a bounce that stalled at the 200-day EMA in April 2016. It broke 2015 support in September and turned sharply higher in October, returning to range resistance one month later. The stock broke out to an 18-month high in February and is now testing new support near $4.50. Strong accumulation predicts bulls will prevail, ahead of continued upside toward $7.50.
As of March 13, MOBL has dropped back into the fourth-quarter trading range and is testing the 200-day EMA at $4.00. Accumulation has held up well during the recent downturn, raising odds for a bounce that yields a new breakout attempt.
Zosano Pharma Corp. (ZSAN) came public near $11 in January 2015 and entered a stairstep decline that initially found support near $2.00 at the start of 2016. That level broke mid-year, dumping to an all-time low at 45-cents in November, ahead of a bounce into 2017. The stock charged higher in February, breaking out above the 200-day EMA, after a migraine relief product candidate produced statistically significant testing results. A pullback to the moving average should reward…