Penny Stock Analysis: Technical Strategies for September 2021

Even if you haven't stepped foot in school for a long time, September can still feel like a time of new beginnings for many of us. So, if you've been meaning to invest in penny stocks and learn more about technical analysis, there's no better time than now to shake up your portfolio and acquire some fresh knowledge. I hope the trades below will help inspire you as you build up your investing education.

Some of the set-ups I describe below may no longer be relevant or intact as of the time you read this article. Please conduct your own due diligence. Many stocks mentioned here were also discussed in the Peter Leeds Newsletter. Peter may own shares in some of the investments mentioned, in which case that fact will be clearly indicated. Please note that penny stocks are notoriously volatile.

MedAvail Holdings, Inc. (MDVL) 

MedAvail Holdings, Inc. (MDVL) is down approximately 65% over August after turning in some decidedly mixed second-quarter results. As of the end of August, however, it looked like an inverted hammer candlestick might be in formation, which would be a bullish signal that shares could take off again. That, as well as a relative strength index (RSI) of 21.88 (and some actually decent balance sheet and revenue figures), may make MDVL a good swing trade candidate, in my opinion.

Cellectar Biosciences, Inc. (CLRB)

Cellectar Biosciences, Inc. (CLRB) witnessed a white marubozu candlestick pattern at the end of August, which bodes well for its shareholders over the month of September. I note too that the signal was paired with strong trading volume, which makes an uptrend in the short term (following a loss of 45% over the past half-year) even more likely.

Borr Drilling Limited (BORR)

Oil stock Borr Drilling Limited (BORR) is on the move, gapping upward 13% as of the last day of August with relative volume through the roof. Combine this with the company's oscillators and moving averages also pointing to a Buy rating (according to TradingView's data), and BORR is looking like a winner.

Casper Sleep Inc. (CSPR)

Casper Sleep Inc.'s (CSPR) RSI of 27.77 is a great sign that the stock is oversold and could therefore see a rebound from its currently depressed levels. So does that mean capitulation is finally here? It's hard to say, given all the persistent negative buzz around the name right now (including bankruptcy rumors). But at a sub-$5.00 price tag as of the time I was writing this report, CSPR is definitely worth a second look.

Acer Therapeutics Inc. (ACER)

Acer Therapeutics Inc.'s (ACER) oscillators and moving averages (according again to TradingView data) are sending a clear Buy signal right now. Equally positive, a white marubozu candlestick had popped up on Acer's chart as of the time I was writing this analysis. That said, this latter pattern isn't underpinned by as strong trading volume as I'd like. Tread carefully here.

Penny stocks are volatile and can generate catastrophic losses. Price levels in this article are hypothetical and do not represent buy recommendations or investment advice. Keep in mind that it's your responsibility to make trading decisions through your own skilled analysis and risk management.

Peter Leeds is the author of several books, including the international bestseller, "Penny Stocks for Dummies." He and his team also issue a newsletter devoted exclusively to penny stock picks and analysis, as well as a popular YouTube channel PeterLeedsPennyStocks.