Stock Gapped up from $2 to $5 pre-market. There was then a steep sell off. I watched ticker step down 2 times, and find some support at $3.40, but there was potential down side of about .20 to 200 MA. I saw a slightly bullish hammer appear at $3.40 with a slight break at $3.50 I made my entry at 3.50 long 400 shares, with a S/L .15 down at $3.35. Trade moved with me to about 3.57, but then stepped down past my S/L. Acceptable loss, and good Application of S/L rule. Loss < 2% of trade account.