An Unusual Way To Find The Best Penny Stocks

There are many unique ways to find the best penny stocks.  While most traders only thing of the Pink Sheets and OTC to find penny stocks to buy, the truth is that the major exchanges actually have the best penny stocks.

One powerful way to locate good penny stocks to trade is to screen for stocks pushing up against the penny stock limits.

What I mean by this is to set your stock market screener to look for stocks about to break above $5.00 per share thus out of the penny stock universe.

Screening for upward trending penny stocks in the $4.50 to $4.99 range is how to locate these potentially explosive names. The reason is once a stock hits $5.00 per share it is no longer a penny stock therefore on the radar of many more big money traders who may have interest.  Yes, that’s correct, at $4.90 no interest, at $5.05 substantial interest is possible due to the self imposed limits many large traders set on stock screens.

The company is Silicon Image (Nasdaq:SIMG).  Price is still pushing up against resistance at the 50 day simple moving average in the $4.90 area.  This means that Silicon Image is remaining on our watch list until this resistance level is broken to trigger a long entry into the stock.

News of an agreement with Integrated Service Technology to open the newest Simplay Labs in Hsinchu, Taiwan failed to provide the impetus to break through the resistance level.

Everything else remains the same with the delayed HDMI royalty payment fully expected by the end of the year and its large patent portfolio remaining intact.

Riding the HD future wave, the company is simply awaiting some catalysts to send shares sharply higher.

Shares are still trading at $4.90 per share.

Action to Take:

We remain locked and loaded ready to enter on a break out of the resistance level to enter longs.

Source: http://tradingtips.com/daily/penny-stocks/unusual-way-find-best-penny-stocks/