I've been trying to improve my fundamental analysis
I was looking at SCYX
a stock that recently has been warned of becoming delisted from Nasdaq if they don't keep their closing bidding price above $1.00 for 10 consecutive days
Sometimes Stocks under a $1 end up stock splitting in order to keep their price above $1 or do an offering
This stock has somewhat "massive" resistance in the $1.40 area from a recent day (31st Jan 2019)
which has traded over 27M volume.
it is also diluting:
Dec 31 17 - 28,971,651 O/S
Sep 30 18 - 47,193,062 O/S
Nov 1 18 - 47,971,673 O/S
Offerings - Warrants
June 24 2016 - 4,218,750 at $3.00
March 8 2018 - 13,198,075 at $1.85
March 8 2018 - 7,988,175 at $2
March 2018 - Sold 21,301,800 shares at the price of $1.69
From the chart, this might look like a potential breakout if it breaks over recent highs at $1.40 (The only day that had significant volume)
However, This has a float of 47M and if there are 21M shares that were bought in March 2018 and still needs to be sold (if they were not sold on the 31st of Jan 2019)...
Personally, I am not going to trade it, and I simply want to learn from this stock,
My conclusion is that they need to hold the stock above $1 at least for 2 more days however there is a lot of overhead resistance
If I would be trading it, maybe I would go long 1k shares once it breaks over 1.40 with massive volume
and selling immediately into spikes into 1.50s - 1.60s area... risking 1.39 (Yest Highs)
... but on the other hand, I don't think this is ideal nor rewarding enough to trade, so I am just watching it and looking for better setups.