2 Penny Stocks That Just Broke Out Of Patterns

RiceBran Technologies RIBT and Netsol Technologies NTWK are two penny stocks that are trading sharply higher into Tuesday.

RiceBran is possibly moving amid a 2021 financial results conference call that’s scheduled for Wednesday.

Netsol is likely moving after the company signed a five-year, multi-million-dollar renewal with a Japanese automotive customer.

Below is a technical look at the charts.

RiceBran Daily Chart Analysis

• RiceBran stock looks to have broken out of what technical traders may call a bullish flag pattern.
• The stock recently crossed above the 50-day moving average (green) and the 200-day moving average (blue), indicating sentiment is turning bullish.
• These moving averages may hold as support in the future.

Key RiceBran Levels To Watch

• The bullish flag pattern occurs after the stock sees a large gain and starts pulling back.
• The stock typically will trade in a downward channel following the large gain. The line connecting the highs starts acting as a resistance level while the line connecting the lows will start to act as a support level.
• In theory, the stock is supposed to cross above the line connecting the highs and see a large upward push shortly after.
• Post-breakout, RiceBran stock needs to show that it can hold some of its gains and consolidate before the price may continue to rise.

Netsol Daily Chart Analysis

• The stock looks to have also broken out of a bullish flag pattern, similar to RiceBran stock.
• The stock crossed above the 50-day moving average (green) Tuesday, and has been trading above the 200-day moving average (blue), indicating sentiment is turning bullish.
• These moving averages may hold as support in the future.

Key Netsol Levels To Watch

• Comparable to the RiceBran chart, the bullish flag pattern occurs after the stock sees a large gain and starts pulling back.
• The stock has been trading in a downward channel following the large gain. The line connecting the highs acted as a resistance level before the breakout; it may now hold as support.
• The stock was able to break out of the pattern and now needs to consolidate while holding some of its gains. If the stock is able to do this it may be able to see a push higher in the future.