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Penny Stocks to Watch In 2023
Penny stocks, at times, react to announcements and news in a wild manner, and any positive news makes them explode. The Fed paused the rate hikes last week after ten consecutive interest rate hikes, and the market has been rejoicing, with some stock sectors seeing significant gains. Even penny stocks are not far behind, as some have seen significant momentum with news floating around. So, let’s see some of the penny stocks to watch out for.
June 26, 2023
VCI Global Limited (VCIG)
The Nasdaq-listed company is engaged in providing business and technology services. The stock exploded on Tuesday, June 20, and closed at a record 156% gain. The company announced that it had been granted exclusive distribution rights from Cogia GmbH for promoting and selling its AI-based “Socialize Messenger.” The stock price rose from the previous day’s close of $2.83 to $11.32 before closing the day at $7.25. Thus, it is one of the penny stocks to watch out for in the coming days.
SoundHound AI Inc (SOUN)
The company specializes in Artificial Intelligence (AI) voice technology and is listed on the Nasdaq stock exchange. It recently posted 56% YoY growth in revenue, and its gross margin climbed to 71% from 56%. The overwhelming demand for conversational AI is proving to be quite advantageous for the company. Thus, it is also among the penny stocks to watch out for in the near future.
Technical Analysis
- The stock rose 19.46% on Tuesday, June 20, and closed the session at $3.99.
- The price is currently trading above its 50 and 200 DMA, which stand at $2.79 and $2.48, respectively.
- The RSI on a daily timeframe above 70 indicates strong bullish momentum in the stock.
- The price has broken out of the .618 golden Fibonacci ratio of the previous downtrend. The next resistance stands at .782 and 1 fib levels at $4.23 and $4.95, respectively.
MGO Global Inc. (MGOL)
The Nasdaq-listed company is engaged in the operation of The Messi Store, offering casual sportswear, being inspired by the legendary soccer player Leo Messi. The company recently announced that its revenue for the first five months of the current year, 2023, has exceeded its full-year revenue of 2022. With Lionel Messi set to join Inter Miami soccer club, the Messi mania has surely contributed to boosting the stock recently.
The stock has been in a declining phase ever since its IPO, with the price falling from $16.61, the opening day high, to a recent low of $0.92. The stock has gained more than 150% in the current month as of June 20 and is presently trading at $2.64, above its 50-DMA of $1.31. The RSI above 70 on a daily timeframe suggests bullish momentum in the stock, and hence, it is one of the penny stocks to watch out for in the near term.
FAQs
Penny stocks with floating news and announcements are mostly active and should be included in the watchlist.
Penny stocks, also sometimes referred to as OTC stocks, are speculative in nature. Hence, they tend to be highly volatile, and with low liquidity, the exit can be much lower than the desired selling price.
Penny stocks are cheap stocks that usually trade below $5. Thus, their low price attracts traders who tend to speculate and jump in to buy it.
You should invest in penny stocks only after proper due diligence on their fundamentals. Thus, if the company’s business grows and it performs well, then the same will be reflected in the rising stock price.