Penny Stocks on the Move: Opportunities and Risks in April 2025

The world of penny stocks—equities trading under $5—has always been a realm of high risk and high reward. In April 2025, a handful of companies have captured investor attention through surging prices, robust trading volumes, and technical patterns signaling potential breakouts. While the volatility inherent to this market remains a concern, these stocks offer intriguing entry points for those willing to navigate the risks.

1. EMX Royalty Corporation (EMX): A Bullish Reversal in Metals

EMX Royalty (EMX) has emerged as a standout performer in the industrial metals sector, rising 17.9% in one month. Traders are watching for confirmation of a head and shoulders reversal pattern, with resistance at the $2.15 neckline. The stock has also broken above its 200-week moving average, a key technical milestone.

A sustained close above $2.15 could signal a sustained uptrend, though investors should monitor volume for confirmation.

2. New Gold Inc. (NGD): Breaking Out of a Seven-Month Base

New Gold (NGD) has surged 33% in a month, breaking out of a seven-month consolidation pattern. The stock has retested its former resistance level ($2.40) as support, a bullish sign. Despite its recent gains, NGD may pull back temporarily to form new patterns for further upside. Its average daily trading volume of 22 million shares ensures liquidity, a critical factor in this volatile market.

3. Protara Therapeutics (TARA): Bull Flag and Long-Term Momentum

Protara (TARA) has formed a bull flag pattern during its correction phase, following a 557% surge in 2024. The stock has held above its 200-week moving average for 11 consecutive weeks, a bullish signal. While volatility persists, this setup suggests a potential continuation of its long-term uptrend.

4. Taseko Mines (TGB): Wedge Breakout Sparks Multiyear Optimism

Taseko Mines (TGB) broke out of a descending wedge pattern, a formation often preceding multiyear trends. The wedge’s bottom ($1.77) aligns with the 200-week moving average, a key support level. Rising volume post-breakout reinforces the case for sustained buying pressure.

5. 908 Devices (MASS): Double-Bottom Surge and Potential Pullback

MASS, with an eye-popping 79% monthly return, triggered a double-bottom reversal in March. The stock gapped up above its 20-week moving average, reaching a 30-week high of $4.75. A pullback to test the $3.36 neckline could present a high-risk, high-reward entry point.

Notable Volume Drivers: TGL, SBEV, and OMEX

Three penny stocks have dominated headlines with explosive short-term gains:
- Treasure Global (TGL): A Malaysia-based fintech firm, TGL saw an 83.2% one-day spike on news of its AI-driven payment platform partnership. Its dollar volume hit $383.72 million, signaling institutional interest.

- Splash Beverage Group (SBEV): Surged 52.5% in a day amid investor optimism, despite a delisting threat.
- Odyssey Marine Exploration (OMEX): Jumped 62.7% on deep-sea exploration prospects, though its volatility remains extreme.

High-Financial-Health Picks

For investors seeking stability amid volatility, four stocks offer strong fundamentals:
- BAB Inc (BABB): A franchised bagel brand trading at $0.81, with an 11.2% upside.
- iHuman Inc (IH): An education firm in China, priced at $2.12 with a 50.1% upside.
- Waterdrop (WDH): A medical crowdfunding platform at $1.49, offering a 20.2% upside.
- Community Health (CYH): A U.S. hospital operator trading at $2.70, with a 42.0% upside potential.

Key Risks and Considerations

• Volatility and Manipulation: Penny stocks are prone to “pump-and-dump” schemes. For instance, SBEV’s 200% surge in days highlights the danger of speculative buying.
• Liquidity Matters: Stocks like NGD and TGL, with high trading volumes, reduce the risk of slippage.
• Technical Discipline: Breakouts (e.g., MASS’s double-bottom) and moving average crossovers (e.g., TARA’s 200-week MA) require strict price confirmations.

Conclusion

April 2025’s penny stock landscape is a study in contrasts. On one hand, companies like MASS (79% return) and TGL ($383 million in volume) demonstrate the sector’s capacity for rapid gains. On the other, the risks—from extreme volatility to fundamental weaknesses—cannot be ignored.

Investors should prioritize technical validation (e.g., confirmed breakouts) and liquidity (e.g., NGD’s 22M shares traded daily). Pairing aggressive plays like TARA or EMX with fundamentally sound options such as BABB or CYH could create a balanced portfolio.

Ultimately, success in this arena demands rigorous analysis, disciplined risk management, and a long-term perspective. As the data shows, even the highest-flying penny stocks can reverse course in days—making stop-loss strategies and patience essential tools for navigating this high-stakes market.