Good penny stocks soon to blow up

Screening Filters

1. Price between $0.50 and $5

   • Purpose: Targets penny stocks.
   • Rationale: The user asked for “penny stocks,” and this price range is a standard way to define lower-priced speculative stocks that can move quickly.

2. Market cap under $300 million

   • Purpose: Focuses on smaller, more speculative companies.
   • Rationale: Micro-cap and small-cap stocks are more likely to experience sharp price swings and rapid momentum moves, which fits the idea of stocks that could “blow up” soon.

3. Volume at least 500,000 shares

   • Purpose: Ensures the stocks are actively traded.
   • Rationale: Higher trading volume helps confirm real investor interest and makes it easier to enter and exit positions. Low-volume penny stocks can be illiquid and harder to trade.

4. Relative volume at least 1.5

   • Purpose: Looks for unusual trading activity compared with normal levels.
   • Rationale: A stock trading at 1.5x or more of its typical volume may be seeing a surge in attention, often a sign of emerging momentum or a potential breakout setup.

5. Price above the 20-day moving average, above the 60-day moving average, or crossing above the 20-day moving average

   • Purpose: Screens for positive short-term price momentum and trend strength.
   • Rationale: Stocks moving above key moving averages, or just crossing above them, often indicate that buyers are taking control. This helps identify penny stocks that may be starting a strong upward move rather than drifting lower.

Why Results Match:

• The filters combine low price, small market cap, and rising trading activity, which is a classic setup for speculative penny stocks with breakout potential.
• The volume and relative volume filters help ensure the stocks are actually gaining attention, not just low-priced and thinly traded.
• The moving average conditions add a momentum and trend filter, improving the odds that the stocks are already starting to move upward rather than simply being cheap.
• Together, these filters are designed to find active, small-cap penny stocks with early signs of momentum, which is the closest practical screen for “good penny stocks soon to blow up.”