One of the most utilized studies by those trading penny stocks is volume. Even without looking into what a company does or if there might be a catalyst in play, volume tells a lot of the story. Take, for instance, a penny stock trading around $1 that generally sees around 1 million shares traded per day. Then, one session, you’re searching for high volume penny stocks and find that same stock. Except for this time, it has traded more than 3 million shares on that day. Chances are, something happened to trigger such a move.
I know this might seems basic. But there are traders who simply look for stocks that have traded more than a certain share amount. They don’t take into consideration what the averages are. So, in this case, if you’re learning how to find penny stocks, volume can play a larger role. This is especially true when you consider unusual volume trends in penny stocks. Irregularities in certain trends give some insight into what the market thinks about specific stocks. If there’s a big spike on a given day, it doesn’t hurt to look into the cause. Remember to also consider what else is going on with the company. Then determine if it’s the right type of setup for you.
For instance, if you’re a swing trader, your strategy doesn’t typically entail buying and selling in a single day. However, a single-day jump may do more harm than good. On the flip side, if you’re a day trader, then a slow-moving stock might not be a part of your style either. Just some small things that can play a big role in the overall approach to trading penny stocks. Needless to say, let’s take a look into a few of the high volume penny stocks to watch this week. Will this latest surge mark the start of a continuation trend or is it just a shorter-term catalyst?High Volume Penny Stocks To Watch: Organigram Holdings Inc.
Organigram Holdings Inc. (OGI Stock Report) has experienced a bit more above average trading activity over the last two weeks. It’s no secret that marijuana stocks haven’t fared well this year. However, sporadic moves have given opportunities for short-term traders to capitalize. Is that what’s going on with OGI stock right now? You be the judge, however, over the last week, shares have bounced roughly 19% from last Tuesday’s low of $1.04.
The company just expanded its portfolio this month and launched a new product. Organigram’s SHRED is a “high quality, high potency, affordable” dried cannabis flower. As the name suggests, it’s a pre-shredded product that the company said is designed to be more convenient for consumers. “Product quality and customer value have been important pillars of Organigram’s product and growth strategies since its inception,” says Greg Engel, CEO, Organigram.
One thing to consider this week is how pot penny stocks will respond to Aurora Cannabis (ACB Stock Report) earnings. As we’ve come to find, companies like Aurora, Canopy, Tilray and others have been bellwethers for the sector. As you might’ve seen today, Aurora Cannabis stock set off a nice sector rally ahead of bullish speculation. The company is expected to release earnings on Tuesday. It will be important to keep this in mind especially if OGI and other pot penny stocks are on your list. A positive outcome or negative outcome could trigger a ripple in the sector.High Volume Penny Stocks To Watch: Party City Holdco Inc.
During the last week, Party City Holdco Inc. (PRTY Stock Report) has also experienced an uptick in daily volume. What’s more, is the PRTY stock has been no stranger to a continuation move either. Since March, the penny stock has managed to climb back from $0.26 to highs this week of $3.54. On Tuesday, the company came out with news that it has actually hired 20,000 employees in anticipation of the Halloween season.
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Considering this is the company’s “Catalina Wine Mixer” (Step-Brothers movie reference), it’s an important time of the year. The company will also open up 25 Halloween City pop-up stores for the season. Roughly 10% of the 20,000 employees are said to be retained after the season is over.
The company did a study this year. Party City found that 96% of parents have plans to celebrate Halloween with 70% of them looking for alternatives to regular trick-or-treating. This has been a key focus for Party City ever since we began discussing it this summer. At the time it was one of the penny stocks under $2, with speculative momentum resulting from reopening talks. After reporting earnings and showing how agressive the focus was on its brick and click business, traders became increasingly bullish on the stock. Will that continue through this Halloween season?High Volume Penny Stocks To Watch: Boxlight Corporation
This morning Boxlight Corporation (BOXL Stock Report) hit the market running. While most of the move came during premarket hours, trading activities, in general, didn’t subside. Boxlight announced receipt of a $22 million investment from The Lind Partners, a NY-based institutional fund manager. The company plans on using the funds for future acquisition opportunities.
Michael Pope, the company’s CEO explained, “Specifically, we are targeting companies for acquisition that will either increase our global footprint or enhance our solutions portfolio for the education market. Potential candidates will be immediately accretive, generate significant revenues, produce positive earnings, and exhibit substantial growth potential.”
If you remember earlier this summer, BOXL stock hit our radar as EdTech penny stocks became the flavor of the month. Compared to some of the other hot penny stocks in that niche at the time, BOXL has actually held up better, if you can imagine that. Shares have held support just above the stocks 200-day moving average for the last month. However, compared to its 52-week high in July, BOXL stock has pulled back around 60% as of this week. It will be interesting to see if this latest update cane trigger momentum for more than just a day. The last time the penny stock experienced volume like this was during the first half of August.