The best time to buy was during that first morning dip. Why?
- Because we can see that support held around $1.50 for the morning
- The risk level would be where the stock opened at
- The volume also surged compared to the market open
Keep in mind this stock had great fundamental news released during premarket hours, and it was a Friday morning, which is the best day of the week for stocks to really run because shorts get squeezed and many people are afraid to hold over the weekend.
If you're still in the stock by the afternoon, we can see the best time to sell. Why?
- The stock couldn't crack the morning high, and double-topped around $3.10, which is a major bearish signal
- Afterwards, the stock them cracked the support level it had been holding around $2.75
- The volume was the highest all afternoon when these two signals materialized, and as we can see it faded for the rest of the afternoon.