KITD, We traded this one on Wednesday 6/13/11, as this stock has over 40% short float and finally trying to come back from huge a downturn. As you can see on the daily chart , even though the price was in a downtrend , Long term swing indicators like MACD and CCI were trending up, causing a divergence.
Divergence between price and indicators can cause eventual trend change in stocks . On 6/12 , it tried to close over 20 MA after a long time and failed , logically people who were short on this stock added to there position. Next day when the stock came back to recapture 20 MA and previous days high, obviously it created some sort of short squeeze . We entered a long position on break of 6/12 high 3.76 and sold last shares at 4.17 for almost 11% gain.
On 6/14 the stock didn’t do much however it made an inside day meaning the price stayed within range of 6/13 price range.That made me pay attention to the stock again on Friday. I set an alert for 4.20 which was 6/13 high. We entered again at 4.20 and sold all last shares at 4.60 for 9.5% gains.
Nice rinse and repeat day trades with almost 20% gain without the headache of holding overnight!
60 minute view:
Stock bases at alert 4.20.My type of setup, bases at alert number for next move. Easy to mange with stop below base and 9/20 EMA 4.15 and R1 .05c stop loss!!!
Sell some 4.37
Old fashioned short squeeze.
Sell Most 4.60 as it has gone parabolic!
Hope this helps. Setup like this is our bread and butter in the chat room.