Penny Stock Trading: How You Could Have Made 22% Gains Last Week

If you've been following our weekly penny stock watchlist for a while now, you know that the Penny Sleuth's list of potential gainers has delivered some impressive performance in the past – and this past week is no different. But I wanted to review a couple of trades in particular, since they gave readers the opportunity to cash in gains of 20% and 22.19% respectively in the last five trading days, when the rest of the market saw its worst single-week slide since October 2008.

But first, I wanted to share another way that you can stay on top of your Penny Sleuth fix...

In case you weren't already aware, the Penny Sleuth is now on Facebook. Our Facebook page gives you a chance to connect with Sleuth editors and fellow readers on one of the biggest social networks around.

As usual, while our Watchlist errs on the safe side of small-caps, using technical analysis to tell us where a stock is headed, we're giving you the chance to offer up more speculative penny stock plays – but this time, you can post your favorite penny plays directly on our Facebook wall. Just click here now to become a fan of the Penny Sleuth on Facebook and post your favorite small-cap ideas.

On July 12, we'll pick a handful of our Facebook fans, and send them an exclusive Agora Financial prize package... so you'll definitely want to become a fan ASAP.

Now, let's get back to this week's penny stock trade setups...

Affymax Inc. (NASDAQ: AFFY) – Last week, I updated you on Affymax, the biotech company that I told you was showing a textbook "Gap Down" pattern, a sign that shares were due to move lower. Since then, the stock has fallen an additional 22.19% — giving Sleuth readers who bet against shares the opportunity to make a 31% total gain in the last two weeks. Shares could be bottoming now – if you haven't already, I'd buy to cover your short position. And if you were able to scoop up a tidy profit on this stock, I want to hear about it! Shoot me an email at [email protected] and let me know how you fared...

Renaissance Learning (NASDAQ: RLRN) – Educational software developer Renaissance Learning is posing an interesting chart pattern right now – one that's not clearly bullish or bearish, but it still easily traded. Shares could be staging an ascending triangle pattern – which would send a "buy" signal on a move above $16.50 – or a triple top – which would send a "sell" signal on a fall below $14. Either way, there could be money to be made on this company.

Minerco Resources (OTC: MINE) – Here's an interesting trade: I told you that this stock was being pumped last week, and that the situation could prove to be profitable for traders, especially on the short side. Well, that turned out to be right – despite a large run-up last Monday, the days since have send shares down 20%. This play could have further to fall, but be very cautious with this issue; it's extremely volatile and could spike on another pump attempt.

Rural/Metro Corporation (NASDAQ: RURL) – This isn't the first time I've brought up Rural/Metro Corp, a private fire protection services business based out of Scottsdale, AZ. While this stock is currently stuck in a trading channel, recent consolidation activity in the upper end of the channel leads me to believe this stock could be on the verge of a breakout. Consider buying if shares close above the upper blue line.

Share Your Penny Stock Picks...

Once again, we're going interactive this week...

Just visit the Penny Sleuth's new Facebook page, and post your best penny stock pick on our wall by Friday, July 9.

Click here to post your pick right now...

This article originally appeared on Penny Sleuth.