Initially, I was looking at this just as a day trade due to it matching my criteria. These were my notes for pregame trade.
"1. Stock is in play, premarket rvol showing 14.
2. continuation play from yesterday with a gap up; technicals is showing two converging patterns, a cup and handle, and a GAP fill; has CLEAR resistance lines on the way up.
3. price is within my 1.5 - 25$ range
4. No real news catalyst. (usually prefer one)
5. Hot market (semiconductors made in USA)
I say its a B+ set-up given the parameters. Definitely the choice to play at this point of the market day.
P.S. Stock has the HIGHEST short interest / percentage in the semiconductor market. 41% ish of float is shorted. so ANY large up trend can be an AMAZING uptrend."
Then I realized how much 40% short interest actually is with a float of around 150mil, thats a ton of shortage. And more importantly, (or equally) there are TWO gaps in the chart that can be filled. I think these can force liquidate the shorts. This can easily reach $17 in the next two weeks to month.
"1. Stock is in play, premarket rvol showing 14.
2. continuation play from yesterday with a gap up; technicals is showing two converging patterns, a cup and handle, and a GAP fill; has CLEAR resistance lines on the way up.
3. price is within my 1.5 - 25$ range
4. No real news catalyst. (usually prefer one)
5. Hot market (semiconductors made in USA)
I say its a B+ set-up given the parameters. Definitely the choice to play at this point of the market day.
P.S. Stock has the HIGHEST short interest / percentage in the semiconductor market. 41% ish of float is shorted. so ANY large up trend can be an AMAZING uptrend."
Then I realized how much 40% short interest actually is with a float of around 150mil, thats a ton of shortage. And more importantly, (or equally) there are TWO gaps in the chart that can be filled. I think these can force liquidate the shorts. This can easily reach $17 in the next two weeks to month.
Trade active
The day trade very clearly was rejected at the open with massive drop in price on high volume. Pattern still remains on the daily. In at an avg of 3.40/s looking for push through the first gap the low $6 region for first target, and will hold remaining for the next push to $8 region (likely to reject multiple times off both in the mean time giving areas to exit). Relevant news:
1. New CEO takes over today. Dude has like 20 years of semi conductor engineering and leading the opposition companies (like Infineon) and expanding SiC access and marketing to the EV industry. He even oversaw the attempted acquisition of WOLF's SiC Fabs back in 2019 (blocked by regulators which makes sense as its essentially a national defense strategic company at this point for American infrastructure development, even if that wasnt the reason back then). The guy knows the company well coming into it. Could be the leadership WOLF needs to get through the transition period from 150mm to 200mm Fabs and the closing of the Durham location, as well as expand their market reach.
Definitely bullish.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.