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: Rezolve AI PLC (NASDAQ: RZLV)
Today’s penny stock pick is the provider of AI solutions for commerce, Rezolve AI PLC (NASDAQ: RZLV).
Rezolve AI PLC empowers retailers, brands, and manufacturers to create dynamic connections with consumers transcending barriers of location and device. The company was formerly known as Rezolve AI Limited and changed its name to Rezolve AI PLC in March 2025.
Website: https://www.rezolve.com/
Latest 10-k report: https://investor.rezolve.com/static-files/ea695b1a-aec1-4160-bf93-b4d5fc9e495c
Analyst Consensus: As per TipRanks Analytics, based on 4 Wall Street analysts offering 12-month price targets for RZLV in the last 3 months, the stock has an average price target of $6.33, which is nearly 171.70% upside from current levels.
Analysts | Source: TipRanks.com
Potential Catalysts / Reasons for the Hype:
- RZLV is currently embedded on over 41.9 million consumer devices with 16.5 million monthly active users. It has delivered 8 billion+ API calls and 27.9 million GeoZone triggers so far this year.
- The company had recently announced a $1 billion Bitcoin treasury program, starting with a $100 million investment, to support their crypto payment platform in partnership with Tether.
- Hedge Funds Increased Holdings by 75K Shares Last Quarter.
Hedge Funds | Source: TipRanks.com
- Strategic partnerships launched with Microsoft and Google in 2024
On analyzing the company’s stock charts, there seem to be multiple bullish indications…
Bullish Indications
#1 Falling Wedge Pattern Breakout: The daily chart shows that the stock has been forming a falling wedge pattern for the past several months. These are marked as purple lines. It has typically taken support at the bottom of the wedge before bouncing back. The stock has currently broken out from the falling wedge pattern. Once the stock breaks out of the falling wedge pattern, it could move higher.
RZLV – Daily Chart
#2 Bullish ADX and DI: The ADX indicator shows bullishness as the +DI line is above the -DI line, and the ADX line is currently moving higher from below the +DI and -DI lines.
#3 Price above MA: The stock is currently above its 50-day SMA, indicating that the bulls have currently gained control.
#4 MACD above Signal Line: In the daily chart, the MACD (light blue color) is currently above the MACD signal line (orange color). This indicates a possible bullish setup.
#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.
RZLV – Weekly Chart
#6 Bullish Stoch: The %K line is above the %D line of the stochastic in the weekly chart, indicating possible bullishness.
#7 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 RZLV is above the price of $2.45.
Target Prices: Our first target is $4.00. If it closes above that level, the second target price is $5.00.
Stop Loss: To limit risk, place a stop loss at $1.60. Note that the stop loss is on a closing basis.
Our target potential upside is 63% to 104%.
For a risk of $0.85, our first target reward is $1.55, and the second target reward is $2.55. 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. RZLV incurred a net loss of $172.6 million in the year ended December 31, 2024, and $30.7 million in the year ended December 31, 2023, respectively.
RZLV – Consolidated Statements of Operations
- The company uses a limited number of third-party data center facilities to deliver its services. Any disruption of service at these facilities could harm Rezolve’s business.
- DBLP Sea Cow Ltd is wholly legally owned by Dan Wagner, Chief Executive Officer of Rezolve. AI. The company had reported payment expenses of $60.5 million from 2023 to 2024 related to stock options granted to DBLP Sea Cow Ltd.
- Despite being a loss-making company, the aggregate cash compensation paid by Rezolve and its subsidiaries to its executive officers and directors for the year ended December 31, 2024, was $2,164,680.
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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Source: Trades of the Day