Bottoming up after lock up period ended
Updated
Price sold off after the lock-up period expired. A huge volume entered the market, now it seems to be ranging between the yellow lines. I entered on Friday after a break-of-trend in the PM, at 26.7 and it rushed away back towards the price. I moved the stop to break-even already and will reevaluate in case it decreases below this value. The ideal entry would be at the low-yellow line, with an exit below this line. If the bottom of the selloff is retested, I will also try to reenter with a stop below it. On the way up, a break-out of 30s is critical, as this resistance was tested already and constitutes my first target. After that, I will be looking towards measured moves and adding at established inflection points.
These patterns are very tricky to play out, so I save my size not to risk high losses. Always think about risk management, not about the potential wins. It is a strong stock, so a potential gain may be worth a few reentries. Evaluate for yourself. Check my last trade in IQ, which was a similar pattern, although not connected to any lock-up. I was successful at a second reentry when a bottoming up was clear.
These patterns are very tricky to play out, so I save my size not to risk high losses. Always think about risk management, not about the potential wins. It is a strong stock, so a potential gain may be worth a few reentries. Evaluate for yourself. Check my last trade in IQ, which was a similar pattern, although not connected to any lock-up. I was successful at a second reentry when a bottoming up was clear.
Trade closed: target reached
Another good call!
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