Strategy Description: I actually traded this really well but just wanted to make a note of certain behaviour and precautions that needed to be taken when trading this (which I did successfully, but really wanted to reinforce it).
Basically the stock got completely crushed since the lockup expiration. Couldn't find any news to attribute to the downfall. This pretty much indicates that the company is a complete fraud and/or someone is selling shares by the bucketload. One other thing is that the company is so illiquid and relatively low float; so it doesn't take much to get it moving in one direction.
After it flat-lined it breached the base high and oscillated around before uptrending and going parabolic. Now it looks like it probably has a day 2/3. If you were a swing trader the ideal entry was after the base was breached yesterday around $7.00.. But for an intraday trader needed more volume and volatility to get some movement.
The setup looks really obvious and pretty in hindsight, however the chart wasn't that pretty due to lack of volume. This lack of volume/liquidity means that it is very important to offer out on sales, and bid for fill on longs. In particular one thing will draw attention to is around 11:30 it dropped out from just under $9 to $8.11 (my bid was 8.11 and didn't fill :( ). More the point is that you can't use hard stop-losses and must manage risk size. Sell into pops when risk of pullback is there, and buy into any pullbacks.
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