I couldn't trade due to lack of capital. Just uploading from my personal journal to help others learn. Please give karma if this helped.
ABUS is a higher priced stock than what I can trade with my current size, but for educational purposes. Strong 1-year chart and is now testing resistance set back in October of 2017. No catalyst to accompany unfortunately, however I believe the momentum and 1-year bullishness will be able to propel it past the $8.25 res. level even further. $8.25 is potential support if the previous res. becomes new support. If $8.25 doesn't hold as support, intraday support lies at $$7.75.
-Since this is a breakout and the stock manage to break above and hold above the res. level this is a breakout, potentially could still be a fakeout, there could be a potential pullback tomorrow and may break a little bit below the $8.25 level. The next day, depending on far it drops tomorrow, will determine if it will be a breakout.
-The stock is not very over-extended so it could continue to run tomorrow my play would depend on the market open tomorrow.
Sector: Healthcare: Biotechnology nothing special about the sector right now
Pattern: Multi-year breakout
Former runner?: History of spiking big over the course of a few days when spiking fast like this really hasn't been able to hold it's gains. I believe since this was more of a gradual uptrend to res. it will be able to break out and potentially even hold gains.
Float: (Is it a low float which will allow for it to spike more?)
Volume: (Average volume compared with recent volume and is it picking up or dying out?)
Close: Closed up +$0.45 $0.05 above the breakout level.
Volatility/Liquidity: Moves fast
Entry/Exit: Would buy at $8.35 on momentum risk being $8.20. I would be aiming to sell at around $8.50s
Are you forcing this trade?: None
How does multi-day/month/year look?: Strong multi-year chart
1-year 1D Chart
ABUS finished up by $0.80 today or 9.64%. I was watching it in the morning and I was fairly confident that since it was decently strong out the gate that it would finish green on the day if no major panics or negative PRs were released. The stock actually gaped up throwing off my entry and exit points. It gaped up from $8.30 to $8.50 showing a strong signs of bullishness. About 6 minutes in the bullishness slowed down and I got a little nervous so in my head I sold partial/half of my position. This should have been expected it there was no major decline just sideways price action that threw me off at the time I would have been up $0.15/share, in my head I bought at $8.50. From roughly 9:36 to 9:47 it had level 2 to support around $8.55 and level 2 resistance at around $8.65. I would have sold the rest of my position at around $8.75 taking home shares with $0.25/share profit and $0.15/share profit.
ABUS chart 1D:1M
Pros of trade:
Utilized partial selling to take profits and protect account.
Cons of trade:
Sold partial amount of shares out of fear, however wasn't anything truly significant like a lot of sellers causing a dramatic decline nor was their any negative PRs released. Did protect myself doing so yes, but wasn't completely justified.
The lesson I learned is that whens selling always think why you are selling and not just of out emotional fear. Granted the stock may be moving fast so you must think quickly, but make an attempt to think about that.
Can't expect for a stock to just shoot straight up without some type of pullback/consolidation(a.k.a sideways action).
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