Top Penny Stocks to Watch for August 2020
Dear Penny Stock Millionaire,
Before I get to the top penny stocks to watch for August 2020, I want to emphasize a very important trading lesson.
The market has shifted the past two weeks. I’m getting too many messages from traders who think they’re ‘stuck’ in a trade. The great thing about trading is that YOU are in control. You don’t have to hold long term. Use the volatility to your advantage and take profits along the way.
Focus on big percent gainers and recognizable patterns. You have no idea what a random stock with a random pattern will do. With experience, you’ll be more confident about big percent gainers with recognizable patterns. Remember rule #1: cut losses quickly.
Let’s get right to the list of top penny stocks to watch in August 2020…
Top 5 Penny Stocks to Watch August 2020
Kronos Advanced Techs Inc (OTCPK: KNOS)
Kronos Advanced Techs Inc. manufactures air filters that remove bacteria, viruses, and pollutants. In May, Kronos announced upcoming infomercials starring Shark Tank investor Kevin Harrington. He also agreed to join the advisory board. KNOS traded 96.6 million shares in one day on the news.
On July 24, the company announced acceptance as an online supplier at Walmart.com. It was another great example of penny stock informational inefficiency. The stock gapped up on July 27 and ran from 24 to 45 cents per share in two days.
Check out the KNOS three-month chart:
KNOS chart: 3-month, daily candle, penny stocks to watch August 2020 — courtesy of StocksToTrade.com
It would take big news and volume for me to buy. It’s up so much and trades choppy. My last KNOS trade was a morning panic dip buy. For now, it’s a potential dip buy on a big morning panic.
Zest Technologies, Inc (OTCQB: ZEST)
Zest Technologies, Inc. is an agricultural tech company. It provides supply chain visibility for produce and meat. The tracking system uses a hybrid SaaS platform combined with blockchain technology.
ZEST hasn’t had a news catalyst driving recent price action. Even so, check out the perfect multi-month breakout on the ZEST six-month chart:
ZEST chart: 6-month, daily candle, top penny stocks to watch August 2020 — courtesy of StocksToTrade.com
ZEST has been trending up nicely but trades very low volume. I took a small overnight position on July 27, selling into the gap up on July 28. Ideally, I need to see big volume and a news catalyst to buy again. I’ll keep watching.
Big 5 Sporting Goods Corporation (NASDAQ: BGFV)
Big 5 is a sporting goods retailer with both brick-and-mortar and e-commerce offerings. The stock spiked on July 9 after announcing preliminary Q2 earnings. BGFV then trended slowly up on investor optimism toward the sporting goods sector.
Sometimes earnings are already priced in by the time a company makes its announcement. BGFV proved different as it spiked from the $4.60s to over $7 per share on its July 28 earnings announcement.
Here’s the BGFV six-month chart:
BGFV chart: 6-month, daily candle, earnings winner, penny stocks to watch August 2020 — courtesy of StocksToTrade.com
I’d love to see BGFV continue to run higher with more volume. I won’t chase it. But it’s a potential dip buy into a morning panic. For now, I’ll watch it.
Vystar Corp (OTCQB: VYST)
Vystar Corp has several brands in the rubber and plastics markets. Its RXAir UV-light air purifiers have proven effective at killing airborne pathogens (including coronavirus). VYST spiked in May after announcing it was resuming production of its FDA-certified Rx3000 in the U.S.
Now, since the WHO declared COVID-19 is airborne, there’s a big market for air purifiers.
VYST trended up the second half of July. On July 28, the company issued a press release highlighting the CDC’s concerns about the coming flu season. It also explained how its air purifiers could reduce risk of infection in hospitals.
Check out the VYST six-month chart:
VYST chart: 6-month, daily candle, penny stocks to watch August 2020 — courtesy of StocksToTrade.com
I traded VYST on July 17 and 18, taking advantage of a perfect OTC first green day pattern. Then on July 28, I traded the intraday/multi-week breakout. The stock finished the day near its highs.
I’ll keep watching VYST. If it breaks out over the 52-week high it hit on June 22, it could be a buy. Ideally with volume and more news. Otherwise, it’s a potential dip buy into a morning panic.
Sonoma Pharmaceuticals Inc. (NASDAQ: SNOA)
Sonoma is a specialty pharmaceuticals company with a disinfectant and sanitizer called Nanocyn. In May, SNOA spiked from the $5s to $19.60 in two days when Nanocyn was registered in Australia for use against COVID-19.
On July 28, Sonoma announced Nanocyn passed testing for use on Boeing and Airbus planes.
First, check out the SNOA six-month chart:
SNOA chart: 6-month, daily candle, penny stocks to watch August 2020 — courtesy of StocksToTrade.com
Now take a look at the SNOA five-day chart:
SNOA chart: July 22–28, penny stocks to watch August 2020 — courtesy of StocksToTrade.com
Notice the green news icon on the chart. The news was released at 4:05 p.m. Eastern. SNOA spiked to $13.44 in a matter of minutes. This is just one more example of the potential with penny stocks. Especially with the right news catalyst. I’ll keep watching SNOA for now.
That’s it for the top penny stocks to watch for August 2020. Here are some tips on choosing stocks for your watchlist.
What do you think of the top penny stocks to watch in August 2020 watchlist?
Editor, Penny Stock Millionaires