Penny stocks often deliver the fastest moves when momentum lines up with good technical patterns. They’re higher risk by nature, but if traded carefully, they can also reward quickly. Below are five high-probability setups worth watching this week, with clear entry zones, stop losses, and targets.
1) FTN Cocoa Processors (₦6.60)
⭐ Top Pick
Entry: ₦6.30–₦6.70 (buy zone) OR breakout above ₦6.80 with strong volume
Stop loss: ₦5.90
Targets: ₦7.60 (TP1), ₦8.50 (TP2)
Why: FTN Cocoa is showing the strongest alignment of signals — bullish chart pattern, solid fundamentals, and even a TradingView “Strong Buy” rating. The stock is breaking out from an inverse head-and-shoulders pattern with earnings momentum behind it.
2) AIICO Insurance (₦4.18)
Entry: ₦3.95–₦4.10 (on pullback) OR breakout above ₦4.30
Stop loss: ₦3.70
Targets: ₦4.70 (TP1), ₦5.30 (TP2)
Why: AIICO has a cleaner and safer setup than most pennies. It’s forming an ascending flag pattern with steady absorption of supply. Technicals are improving, making this one of the better-structured insurance plays.
3) Cornerstone Insurance (₦7.10)
Entry: Breakout above ₦7.40 OR pullback to ₦6.90–₦7.00
Stop loss: ₦6.20
Targets: ₦8.20 (TP1), ₦9.40 (TP2)
Why: This stock has been coiling in a tight triangle, which often leads to sharp moves once price breaks. Liquidity sweeps have already been reclaimed, setting the stage for an explosive breakout.
4) Japaul Gold (₦2.79)
Entry: ₦2.60 (on pullback) OR breakout between ₦2.80–₦3.00
Stop loss: ₦2.40
Targets: ₦3.30 (TP1), ₦3.85 (TP2)
Why: A classic ascending triangle is forming with volume steadily increasing. While it’s a more speculative play, the reward-to-risk ratio looks attractive for quick swing moves.
5) Regency Alliance (₦1.34)
Entry: ₦1.32–₦1.38 OR breakout above ₦1.42
Stop loss: ₦1.10
Targets: ₦1.70 (TP1), ₦1.95 (TP2)
Why: A bull flag is building, and with equal lows swept, the stock could squeeze higher if volume comes in. Pure penny-stock risk/reward play.
Summary & Execution Plan
Primary Watchlist: FTN Cocoa, AIICO, Cornerstone Insurance → best blend of fundamentals + technicals.
Speculative Bets: Japaul Gold, Regency Alliance → smaller size, higher risk, but capable of 20–30% swings.
