I did my normal end of day scans yesterday for overnight plays which are my most consistent profitable longs and came across this stock, It will relatively low float with only 11.6 million shares, had just around 7 million share volume and a high percent gain on the day and has some news about their drug. Since the stock was technically up-trending I decided it would be better as a dip buy on 9/21 rather than holding for a overnight play. Turns out i was right about the morning panic, the problem is that no matter how much I try and no matter how many videos I watch I can't seem to find good entry points for dips, basically I'm rubbish at dip buying.
For this one, I didn't see any wall of buyers to hold up the price when it bottomed out and started up-trending again. I couldn't really find a reason on why it bumped back up. I did dip again and have some small gap ups but I got too afraid to chase it and decided to ask for advice instead.
What are some other indicators that the stock is bottoming out besides using a wall of buyers? Any help would be appreciated.
Dip buying is great strategy, one of Tims favorites, however it can go badly too. for example AKTX was amazing long today, I wish I was in it from the start, CUR had some small good action, but need to be quick in & out. A lot has to do with getting a good watchlist down to maybe 5 tickers & watch all at opening the volume interest & direction, then not hesitate too long before getting into your long or shorts tickers you have on your watch list. with long bias its more straight forward, but
with shorts you need a broker who has shares available regularly in low price arena, but in future u may add that to take advantage of both sides.
Thank you for all the responses! I did look for a resistance point but not from the previous day. I wne to the 1 year chart and found an area of support and resistance at $1.04. Maybe i need work identifying these levels? I have been paper trading shorts and have been doing really well with. Unfortunately my account is still under $1000 so i cant short yet. How is etrade with short supply?
Im studying and researching the arts of dip buying myself and all i can tell you is look for major resistance and support levels from different time frames. If your intention is to dip buy a morning panic, wait for the stock to pull back from the panic and see if it starts to make higher lows off of the pullback. If the stock begins to uptrend you can enter into one of those higher lows and use the low of the day as your risk level. Of course use your own due dilligence because i havent entered
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