EBIX the Mother of All GapsThis small cap gem should be a fun one for swing traders as the asset has nicely put in higher lows and higher highs in price for the last 15 months or so.
And now at this moment it has 2 nice bullish setups going for it:
1) support at its $31 dollar level where there is also the 21 MA just below it as well.
2) a giant crater of a gap that needs to be filled still at around $47.15.
If the price was to fill this gap that would result in a +35% move to the upside from where we currently sit.
The ultimate target sits around $54, however.
If this $31 level continues to hold, lookout as this asset could move quickly.
Weekly candle close below $31 would be enough risk for me to exit the trade.
Keep that bearish scenario in mind as many traders may be attempting to play this gap also.
EBIX
EBIX NEWS BounceFriday after market hours, news reports came out EBIX was sued for Violations of federal securities laws causing a %40 drop. Yesterday we rebounded up to $31 and consolidated. Today looking for another $31 retest posiblily a move up to $34 then up to $40.
Play it safe with this news it could easily go down more. Set stop losses.
