FSR- a risky penny stock long trade in the EV space LONG
Updated
FSR has been mentioned as a bankruptcy candidate. It has been on a super trend down on
reports that it does not have enough cash reserves to meet operating expenses and production
quotas. However, any review of the chart in the past quarter shows that it is capable of
counter trends where it suddenly gains 10 to 20% in market cap in a short period only to give
it back in the aftermath. It is these countertrends that I have traded recently including
late February and the earliest days of March. At present, FSR price is low in the recent
high volume area of the profile and the Trend Strength Index is shows some volatility.
The LuxAlgo predictive regression forecast is for higher price action in the near term.
I will take a long trade here targeting first the trendline resistance of the falling wedge pattern
and then the mean VWAP line if the breakout occurs. The trade is expectant for a 20-25%
return in a few days consistent with a prior breakout. I will set a stop loss below the support
trendline at 0.116 to decrease the risk while raising the stop loss upon reaching the upper
trendline to 0.13. Call options for 4/19 will be entertained striking 0.50/
reports that it does not have enough cash reserves to meet operating expenses and production
quotas. However, any review of the chart in the past quarter shows that it is capable of
counter trends where it suddenly gains 10 to 20% in market cap in a short period only to give
it back in the aftermath. It is these countertrends that I have traded recently including
late February and the earliest days of March. At present, FSR price is low in the recent
high volume area of the profile and the Trend Strength Index is shows some volatility.
The LuxAlgo predictive regression forecast is for higher price action in the near term.
I will take a long trade here targeting first the trendline resistance of the falling wedge pattern
and then the mean VWAP line if the breakout occurs. The trade is expectant for a 20-25%
return in a few days consistent with a prior breakout. I will set a stop loss below the support
trendline at 0.116 to decrease the risk while raising the stop loss upon reaching the upper
trendline to 0.13. Call options for 4/19 will be entertained striking 0.50/
Trade active
Update. Positions in shares and calls taken at 10:30 AM EDT with price action uphitting the first target in the after-hours with a partial close for 12% profit in
about 8.5 hours. 75% of the position remains. Stop loss adjusted to a trailing loss
of 3%.
Note
Price may retest the upper trendline or simply rise. Target next up is the mean VWAP at 0.1695 ( a little under) with another 25% off the position then. Call options are at unrealized profit of 45% awaiting further action. I will take off 10% of the options at high of day on Friday for purposes of risk management over the weekend.Trade closed: stop reached
FSR fell in the morning action. Stopped out of both shares and calls.
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