Top 5 ASX Penny Stocks to Watch in June 2023

Top 5 ASX Penny Stocks to Watch in June 2023

Reading time: 8 minutes

With the current market uncertainty, it is now even more important than ever for traders and investors to be able to identify great companies with growth potential.

What follows are five top penny stocks out of the ASX (Australian Securities Exchange – more than 2,700 companies are listed on this stock exchange) potentially worth placing on the watchlist for June, each of which can be traded with FP Markets via Contracts for Differences (CFDs).

BrainChip Holdings (ASX: BRN)

BrainChip Holdings Ltd (ASX: BRN), trading at 0.41 AUD, is an Australian company focusing on artificial intelligence technology. It develops hardware and software solutions that accelerate machine learning, deep learning and the analysis of complex data sets.

BrainChip’s principal activities are developing and selling Spiking Neural Network processors used in various markets, including:

• Surveillance
• Cyber Security
• ICT
• Gaming
• Defence Aerospace
• Autonomous Vehicle Technologies

The stock has been trending lower since early last year, though it has seen a moderate bottom form in May. A higher high from the current share price on the daily timeframe, therefore, could serve as a potential trend reversal to the upside.

Bubs Australia Limited (ASX: BUB)

Bubs Australia Ltd (ASX: BUB) trades at 0.17 AUD and represents a leading Australian producer of premium infant formula products. The company offers goats' milk powder and organic dairy nutritional products made using naturally sourced ingredients to satisfy parents looking for the best option for their children's nutrition needs.

A couple of years ago, the company acquired two other successful businesses within the food industry, elevating its distribution network to ten countries across the Asia-Pacific, Middle East and African markets.

Technically, the market has been trending lower since May 2022 and has not shown much in the way of changing yet in terms of basic stock price structure: lower lows/highs. However, this stock is fast approaching a key support level on the daily timeframe at 0.135 AUD, which could prove pivotal this month (and maybe even next month).

Castle Minerals Limited (ASX: CDT)

Castle Minerals Limited (ASX: CDT) trades at 0.013 AUD and is an Australian gold exploration company focused primarily on discovering high-grade resources down under.

With operations spanning Northwest Queensland, Castle Minerals have secured critical landholdings providing access to a large portion of prospective terrain targeting shallow oxide gold mineralisation close to existing infrastructure.

Like BUB, CDT is nearing notable support on the daily timeframe at 0.012 AUD, following a clear-cut downtrend since May 2022. It is also clear that we have a falling wedge pattern present between 0.035 and 0.023 AUD, which can offer reversal structure.

AML3D Limited (ASX: AL3)

AML3D Ltd (ASX: AL3) trades at 0.060 AUD and is an Australian metal technology and automation company that develops additive manufacturing applied sciences for industrial applications.

AML3D has developed Autonomous Orbital Welding technology used in the following:

• Defence
• Aerospace
• Mining
• Heavy engineering

These sectors use it to facilitate lower costs and quicker completion times of projects.

Since May 2022, this stock has essentially been consolidating after trending lower since 2020. Should market participants observe a reaction from support at 0.057 AUD on the daily timeframe and trigger follow-through buying, this may be enough to garner additional bullish interest. A break of daily resistance at 0.140 AUD would add conviction for a potential breakout buying scenario.

Adore Beauty Group Limited (ASX: ABY)

Adore Beauty Group Limited (ASX: ABY) is trading at 0.950 AUD and is an ASX-listed small-cap beauty company based in New South Wales, Australia. It operates five retail stores and has an online presence in Australia and New Zealand.

Selling everything from cosmetics to skincare products, it is one of the most prominent Australian players in the premium beauty category on the Australian Securities Exchange.

Buyers attempted to put in an appearance in July 2022, though sellers countered this move and pushed to fresh all-time lows of around 0.800 AUD in April of this year. Ultimately, though, charts showed buyers have recently stepped in and appear to be forming a potential higher low, following the high of 1.120 AUD in April. A higher high from current prices, therefore, could be something to watch going forward and may be a move that encourages buying in this stock.

Conclusion

Trading ASX penny stocks can be a way to access the ASX stock market, allowing investors to take advantage of opportunities in smaller companies that may have yet to make their presence in the mainstream share market.

As such, keeping your finger on the pulse of what’s happening on the ASX and staying informed about potential stocks worth researching further for long-term gains is important.

Check out FP Markets, a Forex and CFDs brokerage known for its great service fees, customer service and superior trading platforms, and start building your portfolio of ASX penny stocks today.

Charts: Trading View