What penny stocks are bullish

Screening Filters

1. Market Cap: 75M – 400M

   • Purpose: Focus on smaller companies that still have a minimum level of size and liquidity, typical of “penny stock” territory but not micro- or nano-cap extremes.
   • Rationale:
     • Penny stocks are generally smaller companies, so an upper cap of $400M keeps us in the small-cap range.
     • A lower bound of $75M helps avoid the most illiquid, highly speculative microcaps where price moves are random and spreads are huge.
     • This balances “penny stock” characteristics with some basic survivability and tradability.

2. Price: $0.75 – $2.50

   • Purpose: Capture low-priced stocks that fit the common definition of penny stocks while excluding ultra-low “sub-penny” or near-worthless names.
   • Rationale:
     • Penny stocks are typically defined as under $5; this filter tightens that further to under $2.50 to focus on the lower end of that spectrum.
     • A minimum of $0.75 avoids many extremely thinly traded or distressed “lottery ticket” stocks where technical signals are less reliable.

3. Moving Average Relationship: PriceAboveMA20 & PriceAboveMA200

   • Purpose: Identify stocks that are in established uptrends (long-term and short-term), a key sign of a bullish trend.
   • Rationale:
     • PriceAboveMA200: Indicates the current price is above the 200-day moving average, a classic definition of being in a long-term uptrend.
     • PriceAboveMA20: Indicates near-term strength; price is also above the 20-day moving average, suggesting recent momentum is positive.
     • When both are true, the stock is not just bouncing but is aligned in a broader bullish structure.

4. RSI Category: Moderate

   • Purpose: Capture bullish names that have positive momentum without being extremely overbought.
   • Rationale:
     • “Moderate” RSI usually means RSI is in a healthy middle/high range (often ~40–70) rather than extreme >70.
     • This suggests a bullish bias or ongoing uptrend but reduces the risk that you’re chasing a very short-term spike that may immediately reverse.

5. 1-Month Price Change: ≥ +1%

   • Purpose: Ensure there is at least some recent upward price movement, reinforcing the bullish trend criterion.
   • Rationale:
     • A positive 1-month performance confirms that the stock is actually moving up recently, not just sitting above a moving average due to old price history.
     • It tilts the results toward names with active, current bullish momentum rather than stale trends.

6. Exchanges: NYSE (XNYS), NASDAQ (XNAS), NYSE American (XASE)

   • Purpose: Limit results to major U.S. exchanges, improving data quality and tradability.
   • Rationale:
     • Penny stocks on major exchanges typically meet higher listing and reporting standards than OTC/pink sheet names.
     • This helps avoid the most opaque and risky penny stocks, while still meeting the user’s desire for low-priced, smaller names.

Why Results Match:

• The price and market cap filters together target lower-priced, smaller companies that fall within a common understanding of “penny stocks,” but avoid the riskiest microcaps.
• The moving average and 1-month performance filters specifically look for stocks where price is above key moving averages and rising recently, which is consistent with a bullish trend.
• The RSI moderate filter focuses on stocks with healthy upward momentum rather than overheated, overbought spikes.
• Restricting to major U.S. exchanges ensures the resulting penny stocks are more investable and that the technical signals are based on more reliable trading activity.