THURSDAYS ARE FOR TRADING

When it’s Thursday I’m only thinking one thing: the weekend is around the corner.

And you know what that means – we don’t have much time left to make some extra spending money.

Join me at 9:30AM ET as I trade the morning market and look for any ways we can make money before we kick off the weekend!

Click here to join me on Money Morning LIVE.

 

PENNY STOCK HIGHLIGHT: ITMPF

Founded in 2001, ITM Power plc (OTCMKTS: ITMPF) designs, manufactures, and sells hydrogen energy solutions.

The clean energy sector is starting to see bullish trends as we enter the fourth quarter of the year.

What’s more, oil prices are moving higher.

Although there’s no direct correlation between oil prices and clean energy, rising costs of the commodity is creating more talk about clean energy solutions.

We’ve been tracking ITMPF since its last breakout in August.

Even back then, the stock fit the bill for an over-the-counter breakout.

LET’S GET TECHNICAL

Currently, the stock is checking the boxes with the following…

Rising Volume: We’re seeing the average daily volume rise as we get further away from the “quiet” trading that the markets saw in September.

Technical Strength: Today, shares of ITMPF break above their 50-day moving average. This trend has been in a “neutral” trend for the last two months as the stock – and its peers – waited for volume to begin increasing as we head into a seasonally strong period for the clean energy trade.

Potential Bullish Volatility: ITMPF shares are now pressing against their top volatility band as the stock rallies above its 50-day moving average. This pattern most represents the path that the stock took in early November 2020 as it launched from a price of $3.50 to an ultimate peak of $10. Given the nature of last year’s rally, I don’t expect to see an exact repeat, but the market is likely to push prices higher to our target.

ACTION TO TAKE

Buy ITMPF for a limit of $6.25. Add a 7% trailing stop to the position.

The year’s final countdown has begun.

Q4 is underway and I’m expecting the markets to get busy.

We can make money from all this activity by trading options, click here for more details.

Until next time,

Chris Johnson


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