We recently started a series called “Penny Stock of the Day”. These ideas are geared towards traders with an extremely high risk appetite.
Our Penny Stock of the Day is chosen by screening for stocks under $5 and then applying technical analysis on the shortlisted set of penny stocks showing unusual volume. When making these trades, please make sure to pay vigilant attention to pricing moves and have a strict stop loss in place to avoid significant losses.
Penny Stock of the Day: Quince Therapeutics, Inc. (NASDAQ: QNCX)
Today’s penny stock pick is the biopharmaceutical company, Quince Therapeutics, Inc. (NASDAQ: QNCX).
Quince Therapeutics, Inc. focuses on acquiring, developing, and commercializing therapeutics for patients with debilitating and rare diseases. The company’s lead asset candidature comprises EryDex for the treatment of rare pediatric neurodegenerative disease, including A-T, an inherited autosomal recessive neurodegenerative and immunodeficiency disorder caused by mutations in ATM gene.
Its AIDE technology platform, a drug/device combination platform that uses an automated process to encapsulate a drug into a patient’s own red blood cells, as well as consists of an automated equipment the RCL, a sterile single-use consumable treatment kit comprising kit medical devices, syringe kit, and process solutions. The company was formerly known as Cortexyme, Inc. and changed its name to Quince Therapeutics, Inc. in August 2022.
Website: https://www.quincetx.com/
Latest 10-K report: https://ir.quincetx.com/static-files/c61b6ab9-e8e4-4474-a14e-2bedd48411fa
Analyst Consensus: As per TipRanks Analytics, based on 3 Wall Street analysts offering 12-month price targets for QNCX in the last 3 months, the stock has an average price target of $7.00, which is nearly 137% upside from current levels.
Analysts | Source: TipRanks.com
Potential Catalysts / Reasons for the Hype:
- The company’s Phase 3 NEAT trial completed enrollment and last patient last visit in December 2025, with topline results expected in Q1 2026 (expected in February). If successful, it could lead to an NDA filing in 2H 2026 and potentially the first-ever treatment for A-T. eDSP could potentially generate billions in US revenue alone at high margins.
- eDSP shows promise beyond A-T, with early data in pulmonary and inflammatory bowel disorders published in December 2025.
- QNCX retains a 7.5% ownership in Lighthouse Pharma. This is a ‘sleeper’ asset that could provide milestone payments or royalty income if Lighthouse’s separate pipeline advances.
On analyzing the company’s stock charts, there seem to be multiple bullish indications…
Bullish Indications
#1 Symmetrical Triangle Pattern: The daily chart shows that the stock has currently formed a symmetrical triangle pattern, which is marked as purple color lines. A symmetrical triangle pattern represents a period of consolidation before the price breaks out. This is typically formed when there is indecision in the price movements and uncertainty among the buyers and sellers. Once a breakout from the upper trend line occurs, it usually signifies the start of a new bullish trend.
QNCX – Daily Chart
#2 Price above MAs: The stock is currently above its 50-day as well as 200-day SMA, indicating that the bulls have currently gained control.
#3 Bullish RSI: The RSI is above 50 and moving higher, indicating possible bullishness.
#4 Bullish Stoch: The %K line of the stochastic is above the %D line, and has also moved higher from oversold levels, indicating possible bullishness.
#5 Above Support Area: The weekly chart shows that the stock is currently trading above a support area, which is marked as a pink color dotted line. This looks like a good area for the stock to move higher. The stock is also trading above its 50-week as well as 200-week SMA, indicating that the bulls are gaining control.
QNCX – Weekly Chart
#6 MACD above Signal Line: In the weekly chart, the MACD (light blue color) is currently above the MACD signal line (orange color). This indicates a possible bullish setup.
Recommended Trade (based on the charts)
Buy Levels: If you want to get in on this trade, the ideal buy level for QNCX is above the price of $3.00.
Target Prices: Our first target is $4.00. If it closes above that level, the second target price is $4.60.
Stop Loss: To limit risk, place a stop loss at $2.50. Note that the stop loss is on a closing basis.
Our target potential upside is 33% to 53%.
For a risk of $0.50, our first target reward is $1.00, and the second target reward is $1.60. This is a nearly 1:2 and 1:3 risk-reward trade.
In other words, this trade offers 2x to 3x more potential upside than downside.
Potential Risks / Red Flags:
- The company has a history of net losses. QNCX’s accumulated deficit is $376.5 million as of December 31, 2024.
QNCX – Consolidated Statements of Operations
- The NEAT trial is binary; failure could tank the stock. Concerns include potential flat or muted progression in A-T patients. Variability in disease progression (heritability, CAG length) could also confound results
- Corporate Insiders placed Informative Sells of Shares Worth $173.5K in the Last 3 Months.
Insiders | Source: TipRanks.com
- The company’s business and future success depends on its ability to successfully develop, obtain regulatory approval for and successfully commercialize its lead drug candidate, eDSP, which is under clinical development for A-T.
- Despite being a loss-making company, the executives are being paid significant compensation.
QNCX – Executive Compensation
As you can see, today’s featured penny stock offers big upside potential… but it also comes with a number of risks and red flags. As always, when dealing with penny stocks, we advise caution before entering into such high-risk ventures. Remember to think before you trade… understand the risks… and if you decide to trade, stick to your stop-losses!
Happy Trading!
Trades of the Day Research Team
READ BEFORE TRADING PENNY STOCKS: The allure of penny stocks lies in their potential to deliver massive gains in a short period of time. However, in exchange for that opportunity, most penny stocks carry tremendous risk. They can be extremely volatile and are susceptible to “pump and dump” schemes and fraud.
Unlike regular stocks, the financial condition of most penny stock companies can be extremely difficult to analyze, as the majority of such stocks are traded on over-the-counter (OTC) exchanges, which are typically less transparent and less regulated than the major exchanges. In fact, in the penny stock space, it’s often easier to spot warning signs and red flags than it is to identify a sound investment. Nevertheless, we do our best to identify short-term trade opportunities in this exciting space because we know some of our readers are looking for high-risk, high-reward ideas. We just urge you to make sure you fully understand the risks before making any of these trades.
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