Understanding trends in any stock is the key to a successful trade.
We view the ebbs and flows of a stock through patience and a precise gathering of information. $AWX, for example, consistently has a morning panic, a slow grind before the gap up, a squeeze, and then comes right back down. By the end of the trading week, $AWX had one of the highest supernovas in history with a short squeeze from $6 to $14.
Every day presented itself as a green day as this ticker became overextended, and from what you can see, there will be a gap up starting the week at 200%, which is so rare. Be wary as stocks like this often get a lot of attention after a spike like this.
Block or Resistance
As you watch the volume skyrocket, it’s essential to keep an eye out and use it as a block or resistance. If you are not comfortable with the potential risk, get out because you don’t need to catch the whole wave; profit is profit.
I would say to watch out for over-confidence with tickers like this, overcrowding and excess volume. Just remember you don’t need to catch the top or the bottom; the goal is profit; however, it comes.