Give 10 requirements to screen for a penny stock < $1 that is profitable to swing trade in a 1-2 week time frame
8/1/2024 03:17am
To effectively screen for penny stocks under $1 that are profitable for swing trading within a 1-2 week timeframe, consider the following 10 criteria:
1. **Low Price**
- Price 5%
- 2-Week Percentage Change > 10%
3. **High Trading Volume**
- 1-Week Average Trading Volume > 500,000 shares
- 2-Week Average Trading Volume > 1,000,000 shares
4. **Positive Analyst Ratings**
- Consensus Rating: Buy or Strong Buy
5. **Strong Financials**
- Positive Earnings per Share (EPS)
- Positive Revenue Growth
6. **Market Capitalization**
- Market Capitalization > $50 million
7. **Recent News and Developments**
- Positive News Releases in the Last 30 Days
- Recent Corporate Actions (M&A, Product Launches, etc.)
8. **Sector**
- Diversified across Multiple Sectors
9. **Volatility**
- Volatility > 5% over the last 30 days
10. **Technical Indicators**
- Forming Bullish Patterns (e.g., Double Bottom, Morning Star)
- Moving Average Convergence Divergence (MACD) showing upward momentum
These criteria aim to identify penny stocks that are not only priced under $1 but also have the potential for a short-term price appreciation due to their strong recent performance, positive analyst ratings, and favorable market conditions. These stocks should be further evaluated for potential swing trading opportunities, considering factors such as risk tolerance, investment goals, and overall market conditions.