SOLO and SKYS may be the two most difficult stocks in February! A lot of people have fallen into the trap, first silently mourning for the wallet for three minutes.
Not much to say, this article mainly explains some of the little details about the first green day pattern, and how to trade the first green day pattern, how to avoid the consolidation breakout, also later support. Those are crucial to short sellers, you can also manipulate them into a buying strategy or wrong strategies! ~
First, let’s look over the SKYS pattern on 15th Feb
There is a little bit pushing in the pre-market,when you see there is no volume in the premarket, you can’t really judge or to do or a bond estimate through an entire day, so you can’t really predict the entire day volume.
Typically when stock pulls back and start breaking pre-market high, the pre-market high becomes a support.
You can find the chart has two layers support, one is at $0.8, another one is at $1, for the stock to crack $1 will be a little bit difficult.
This is a typical first green day pattern that happens the most, it pulls back, then breakout, after that consolidate for the entire day, finally crack a little bit after 2:30PM.
When it crack a little bit after 2:30PM, you can never tell if it gonna cap down or cap up in the second day, it’s about 50 percentage chance.
For penny stock ticker of most of the company, they would love to make their stock hold over $1, because it’s meets the last requirements from NASDAQ.
For the stock to crack $1 will be a little bit difficult, when it crack $1, you don’t know if it’s gonna gap up or gap down, if that sticker gets more volume on first green day, let’s say gets about 15M volume on the second day, and start breaking out this $1.5 area, you will be potential long then short, definitely for me.
Lots of people like to shorting into the spikes, especially when the stock do this curve spikes, it’s really hard for this parabolic come back down, that’s why I typically don’t short into those spikes.
Let’s see the pattern from SOLO
Only into the front side morning spick, the volatility is there, but after that, the volatility is not there anymore, the range is bouncing back and forth really tight.
Let’s say if you are shorting based on the previous resistance.
Assume you shorted at the top, it’s $5.08 and you are holding to $4.40, that’s about 60 cents. That’s not good enough percentage to short into the first red day, if you track the average winning percentage on first red day.
When a stock is around 150M,200M,300M market cap, it’s really difficult for them to come back down, also really difficult for them to drop really quickly.
The higher market cap is, the lower volatility is.
Thank you for your reading
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