Penny Stocks to Buy Using Technical Analysis for January 2019

The handsomeness of technical analysis (TA) is that the opportunities are there whether the markets are climbing or falling. Thanks to a massive psychological cadre among investors (which started in October and now has spread right until today), overall volatility has been increasing, and that volatility is go for life blood for traders.

Of course, the current market scenario can be a double-edged sword. Sure, gains may be more signal and profitable opportunities more common in erratic markets, but when you make a bad call, the fallout can be swift and ugly. That is why, strikingly right now, but always always always, you should consider stop-loss orders to limit your downside.

In a theoretical exemplar, if I personally buy a stock at $4.75, I may sell the entire position if it drops to $4.59 or less, for any reason. That is not foolproof, but it serves limit any significant downside, enabling me to learn from mistakes and live to fight another day.

Since I am wrong heaps of the time, the fact that I’m still around financially means that using stop losses well has been enthusiastically effective for me (although it truly is an art to learn, understand and use stops profitably and well). 

The other important aspect of TA is make accurate you seek confirmation of any on-chart indicators you are seeing. What may look like a lamb may in fact be a wolf. Instead of being short-tempered, wait until you hear if it is roaring or bleating before you approach.

One of the hardest aspects of developing financial content is the window between performing the division and when the content gets published. Material events or even significant share price moves can often succeed into play in a meaningful way.

Case in point – Cocrystal Pharma, Inc. (COCP) spiked 16% higher on Friday, truth up a good part of the gains we are expecting. Since Thursday, the stock showed a Doji trend-reversal candle on the Japanese candlestick blueprint after a moderate decline, $2.80 has been forming into a support level and current prices are looking completely compelling.

Add to that Cocrystal Pharma shares closed at their very high of the day on Friday (on greater-than-typical trading bulk), and we believe that this one still has a lot more room to run toward and potentially above $5.00. However, it was actually the cup and traffic in pattern we first saw that got our attention (see chart).

Technical Set-Up

A very complicated and involved analysis reveals a acutely simple set-up. If you decide to get involved, Cocrystal Pharma may be flashing massive “run away” signs if shares ever dip toward or underneath $2.80. Until then, many winds are at Cocrystal Pharma’s back, from many angles.

Coinciding to the money flow, about $8 million has come out of Orgenesis Inc. (ORGS) shares (more than the amount “accepted in”) since October. Shares are mildly oversold, with the relative strength index (RSI) rising from 20 on Dec. 24 to relating to 40 now – nothing extreme, but meaningful enough to justify yapping about it here.

Since Nov. 30, of the 18 merchandise days, we’ve seen bearish candles 15 times. Of the three bullish candle trading days, two of them (Wednesday and Friday) were on top of the three most recent days.

I mention this now because most analysts do not put enough consideration into such a once in a blue moon watched sentiment indicator (ratio of down to up days, and more importantly, the shifts in the underlying trends of that correlation). Before a plant grows from the dirt, the first signs are typically when it pokes a stem or leaf out of the sludge. Orgenesis stock is telling us that story with the almost-overlooked and oft-misunderstood changes in investor bias.

Technical Arrangement

In my opinion, if you decide that getting involved with Orgenesis makes sense for you, I would buy and stay involved for as desire as this “just getting started” uptrend plays out. Any time Orgenesis fails to maintain a gradual (and thus uncountable sustainable) rising trend, look to cut losses.

From a fundamental attitude, I expect silver mining companies to be among the best performing investments in 2019. So why are we talking about them from a TA footing?

Well, Americas Silver Corporation (USAS) was the only stock from hundreds that made our cut from both the central analysis and technical analysis aspects. The share price has just reversed a long, drawn-out downtrend from $5.00 a year and a half ago, and occupation activity has been bursting strongly higher.

Just Wednesday, Americas Silver shares broke $1.45 guerrilla, and the stock traded as high as $1.79 on Thursday. I typically prefer oversold shares for TA, but Americas Silver is actually to a certain overbought (RSI is at about 58, so the metric is meaningless right now and should be ignored). That may partially explain why investors were so brisk to sell shares into the price strength, bringing this one back to $1.64 on Friday.

Trading activity is also picking up a lot – day over and above day, month over month and year over year. Whether you are a technical trader or fundamental investor, I feel strongly that Americas Hollowware stock will entertain higher prices from here.

Technical Set-Up

If Americas Silver shares ruin above $1.80, this one may never look back. If the stock starts heading lower, and especially if prices dip below-stairs $1.30, you may want to jump ship.

Long-legged Doji. Long-legged Doji. Then two hours of negative trading … and since then, iPass Inc. (IPAS) has been nothing other than rising.

The Dojis, which staged up near the bottom of a downtrend (as they tend to do), represent indecision among investors. Thus, they often make known a reversal of the prevailing trend, which in this case would be a shift from downward to upward.

Shares have in the offing been held between $1.65 and $1.50 (even including the trading from the extremes of the long-legged Dojis), and it was not until Friday that iPass rations broke out by smashing through that $1.65 price level, even reaching up to as much as $1.80 before attack back to current levels of $1.66.

The selling from $1.80 is actually quite a bearish indicator, but it may be interesting to note that the helpings stopped short of $1.65.

Technical Set-Up

My submission is that the $1.65 level (which used to be resistance) has become confirm, and that is why the shares have thus far maintained just above that level. The situation also leads to a lower-risk, higher-reward trap for investors looking to eject from the investment if the stock dips below $1.55 or so and certainly if it drops below $1.50, in my impression.

As of five trading days ago, ArQule, Inc. (ARQL) was heavily oversold (with an RSI of 20), and the dispensations were at their lowest price in 10 months. Since then, buyers have seemed to wake up, proposing the line at $2.25, causing the RSI to move toward 40 and pushing share prices as high as $2.88.

The $2.25 level may set up represented a bottom and looks like pretty solid support. There is also resistance at the $2.80 level, so portions may be range bound between those two points for now.

However, the trend shift and momentum are both telling the same chronicle – ArQule stock is going to take a run at breaking out. If successful, look for these shares to move toward prices of $3.50 to $3.75.

Technological Set-Up

Be ready if this one breaks above $2.80, because that may just represent the start of a more valuable move higher. Watch the potential downside, which would be illustrated by any dip below $2.50.

Plug Power Inc. (

The Goldfield Corporation (GV)