Today we traded $GERN in the chat room for $280 in profit. Here’s a review of what I saw in this stock and why the trade worked.
There were three things I liked about $GERN when I was scanning:
1. Multiple taps of $1.56
2. Gap fill at $1.56 (typically when a stock starts to fill a gap on a chart it won’t stop because there is no immediate resistance in the way. However, this 200 DMA provided a bit of resistance on this gap., so that is why I chose to sell it there)
3. Expanding volume on the chart
For these reasons, the entry was easy on the chart and the exit was even easier. The 200 DMA overhead at $1.71 was my target. The moving average basically drew the stock to it and that was the major resistance, so that’s where I chose to sell my stock.
I can teach you how to trade gap fills and a whole lot more! Email me at firstname.lastname@example.org