When choosing the right penny stock, I analyze two indicators: the MACD
and the RSI
. In this case, the MACD
has already crossed over and the RSI
is about to cross the 50 mark, or what I like to refer to as my "trigger line". If you look at how this stock behaved when both indicators were displaying these patterns, it appears that the stock has increased not long after. In this case, I would buy and hold until the MACD
crosses back over and the RSI
enters the "below 50" mark again. If the price decreases by 10% to 0.81 I would cut my losses.