Before placing a pending order, take a quick look at the intraday (time-sharing) chart. In 24 hours, $FORM 24 is up by almost 40%. But that upper wick with a high at $0.4255 sits noticeably above the current $0.3613—classic pump-and-retrace, and how clean the “washing” is can be seen from the trading volume.
The whole rally was propped up by about 370 million in trading volume, with trading value of 133 million USD. The peak turnover rate within a single hour isn’t low. With that level of capital coming in and then leaving, it suggests the buyers chasing higher and the sellers dumping are fighting in the same time window. Below $0.2559 is the breakout start point for this leg. If it breaks down, it means this bullish candle was a bear trap (a bull trap). If $0.4255 isn’t broken, the bulls still have the capital to attempt a second test.
Set the stop-loss pending order below $0.2535. First see whether $0.3980 can be reached, then try for a breakout above $0.4255. The risk/reward ratio is roughly 1:2.5, and there’s enough room.
As for how this stock, $FORM , will move next—just see whether the outside/market trend line gives it any respect.
#FORM
The whole rally was propped up by about 370 million in trading volume, with trading value of 133 million USD. The peak turnover rate within a single hour isn’t low. With that level of capital coming in and then leaving, it suggests the buyers chasing higher and the sellers dumping are fighting in the same time window. Below $0.2559 is the breakout start point for this leg. If it breaks down, it means this bullish candle was a bear trap (a bull trap). If $0.4255 isn’t broken, the bulls still have the capital to attempt a second test.
Set the stop-loss pending order below $0.2535. First see whether $0.3980 can be reached, then try for a breakout above $0.4255. The risk/reward ratio is roughly 1:2.5, and there’s enough room.
As for how this stock, $FORM , will move next—just see whether the outside/market trend line gives it any respect.
#FORM