Buying penny stocks when they have reached a sustainable high is a good penny stock investing tip.

Most penny stocks, after reaching a 52 week high, will come under selling pressure that drives the price back down. But sometimes, often due to fundamental reasons, the stock sustains it’s high price. This in turn attracts further investors or existing investors to increase their holdings.

If the stock has broken through it’s previous high it will likely continue to grow to reach a new level. Look out for news as to how the company if performing in the real world. A new product may have been released or new contracts signed. Anything that indicates improved performance.

Be aware though that the usual selling associated with a penny stock price reaching it’s 52 week high may simply be delayed. Wait a few days to see if the price continues to move up before investing or increasing your holding.

Dave J.

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