Best Penny Stocks to Watch in April 2025, Using Technical Analysis

These are some of the penny stocks with interesting charts using technical analysis that performed well over the past month

Once a stock price is below $5 per share, it is categorized as a penny stock. Frequently, but not always, penny stocks have small market capitalizations and are prone to high volatility due to low liquidity and trading volumes. Penny stocks can, therefore, provide an opportunity for large, quick gains because a small movement in the price of a penny stock can produce a large percentage gain. But they also carry significant risks compared to more established stocks. To guard against the risks associated with investing in penny stocks, the stocks discussed in this article have a minimum price and volume criteria, along with clear chart patterns and other technical analysis indicators.

Below is an analysis of developing bullish patterns in penny stocks for April 2025, pulled from a screen showing positive one-month performance, a minimum price of $1.50, and 30-day average daily volume of 200,000 shares.

All charts and data are current as of March 27, 2025.

EMX Royalty Corporation (EMX)

• Price: $2.11
• One-month return: 17.9%
• Average daily trading volume: 386,000
• Exchange: New York Stock Exchange

EMX Royalty Corporation (EMX) is in the industrial metals and mining industry and explores for and receives royalties from mineral and mining properties. The company’s stock has formed a large potential head and shoulders bullish reversal pattern that recently tested resistance around the neckline with a high of $2.15. Resistance was seen at the exact swing high from May 2024 that led to a decline and establishment of the right shoulder of the pattern. During the advance, a breakout above the 200-week moving average was triggered. A new breakout of the head and shoulders pattern would further confirm the strength indicated by the moving average breakout. A daily or weekly close above either line will provide further evidence for improving underlying demand that could lead to a new bullish reversal and the beginning of an uptrend.

New Gold Inc. (NGD)

• Price: $3.62
• One-month return: 33.0%
• Average daily trading volume: 22.0 million
• Exchange: NYSE

The stock of New Gold Inc. (NGD) triggered a decisive bullish breakout of a seven-month basing pattern recently and it looks poised to move higher. Signs of strength include the fact that support for the consolidation pattern was seen above $2.40. That price level was previously resistance at the January 2021 swing high. Notice that a breakout of the $2.40 high triggered in August 2024, and it was quickly followed by a successful test of that price area as support. That pullback was followed by a spike higher. The breakout triggered a continuation of the advance from the March 2020 low. Also, during the sideways correction, NGD stock stayed above the prior resistance at $2.40, indicating it as an area of support. During the correction, the low was $2.43. In the short-term, the stock of NGD is extended, but following a pullback, it should establish new price patterns to consider.

Protara Therapeutics, Inc. (TARA)

• Price: $4.54
• One-month return: 21.4%
• Average daily trading volume: 301,400
• Exchange: Nasdaq

After establishing a swing low of $1.60 in October of last year, the stock of Protara Therapeutics, Inc. (TARA) advanced by $8.89 or 557% in eight weeks. A bearish correction followed, resulting in a higher swing low at $3.19 in early March. Support was seen at the 50-week moving average. That was the first test of support since the 50-week moving average, currently at $3.18, was reclaimed in late November. During the rally, the stock broke out above the 200-week moving average for the first time and then closed above it for 11 weeks. This is long-term bullish behavior that signals the potential for a continuation of a developing bull trend. A bull flag pattern has formed during the correction, but it looks like it may need more time to develop. Behavior around the 50-week and 200-week moving averages should continue to provide clues to changes in demand, along with a rising trendline.

Taseko Mines, Ltd. (TGB)

• Price: $2.43
• One-month return: 16.8%
• Average daily trading volume: 8.0 million
• Exchange: NYSE

Taseko Mines, Ltd. (TGB) is a Canadian mining company specializing in copper, gold, molybdenum, niobium, and silver exploration and development across North America. The company’s stock broke out of a bullish descending wedge recently. The larger pattern is not perfect but nonetheless shows the potential for a multiyear bullish breakout. A bull wedge is a trend continuation pattern, and therefore, if strength is retained, the May 2024 peak of $3.15 could be surpassed. That was the highest price for the stock since 2013.

It is not insignificant that the bottom of the wedge at $1.77 was a clear test of support at the 200-week moving average. Notice that the advance prior to the wedge correction was $2.10 or 200%. Increasing volume following the wedge bottom shows improving demand before the breakout and increasing interest in the stock. It can be watched during pullbacks for signs of support that could lead to the stock moving higher.

908 Devices, Inc. (MASS)

• Price: $4.01
• One-month return: 79.0%
• Average daily trading volume: 3.2 million
• Exchange: Nasdaq

A double-bottom bullish reversal pattern triggered in the stock of 908 Devices, Inc. (MASS) in early March. The company operates in the medical devices industry, providing mass spectrometry solutions for diverse scientific and industrial applications. Although the initial breakout quickly failed, the following week, the stock gapped up above the 20-week moving average and then pulled back to test it as support. That was the beginning of a sharp one-week rally and a $2.13, or 78.8%, gain in the
stock to a 30-week high of $4.75. It produced a large outside month for March, reaching a seven-month high.

The first pullback following a breakout of a key pivot level can present one of the better decision points as the trend may just be getting started. A pullback to test support around the 50% retracement and neckline of the double bottom at $3.36 and $3.29, respectively, or higher or lower, should help gauge interest in the stock.

What to Know About Penny Stocks

Many penny stocks trade via over-the-counter (OTC) markets, which means they have minimal regulatory oversight and little analyst coverage, making it difficult to access accurate company information.

However, the penny stocks we’ve identified in this article are all listed on the New York Stock Exchange or Nasdaq, which means they are subject to the same listing requirements as any other company on these exchanges. These requirements are intended to ensure that only high-quality securities are available for trading on the exchange.

While penny stocks are a riskier investment than established stocks due to their volatility, the potential for high returns is attractive to some investors.

How We Chose the Best Penny Stocks

To screen for penny stocks with interesting chart patterns and other technical analysis indicators, we used the following criteria. Stocks had to have positive one-month performance and be priced under $5.00. To help improve the reliability of the chart patterns, the stocks had to have a minimum price of $1.50 and an average 30-day trading volume of at least 200,000. The stock also had to have at least 24 months of trading history.

The charts were also reviewed for bullish patterns, including breakouts above trendlines, key resistance, and moving averages. Candlestick patterns were also considered, as we looked for signs that pointed to a bullish trend reversal or indications that a trend was strengthening. Still, it’s important to remember that past performance is not a guarantee of future performance.

Penny Stock Advantages and Disadvantages

The low price of penny stocks offers investors high potential for growth, and they can give smaller businesses a platform to access funding. But while these stocks can bring investors significant gains, they also carry the risk of significant losses. There are greater risks associated with investing in penny stocks than with more established stocks.

Penny stocks usually lack liquidity. It can also be difficult to find solid public information about penny stock companies that trade over the counter. Given the additional risks, penny stocks are not suitable for all investors, especially those with a low risk tolerance.

Another disadvantage is that the price patterns may take longer to unfold and single-position drawdowns can be larger than normal, given the higher potential volatility in low-priced stocks.

There are ways to mitigate the added risks, starting with raising the minimum price and average trading volume and selecting penny stocks that trade on the NYSE or Nasdaq. Overall portfolio risk can be contained by allocating only a small amount of total capital to the penny stock market.

By carefully screening, watching, and waiting for price patterns to unfold, investors can access a market environment that has the potential for large gains in a relatively short period of time. But that depends on entering a position at the right time.

The Bottom Line 

Penny stocks have the potential to sometimes see sharp multi-week or month rallies that, on a percentage basis, exceed expectations. They can present opportunities for investors that are difficult to find otherwise. This article features five interesting charts of penny stocks that had advanced during the prior month and showed upside potential, given the presented technical analysis.

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As of the date this article was written, the author does not own any of the securities listed above.