Hey everyone,
I was looking at $CBLI today, and I am absolutely confused by the pattern. It had a failed spike at the open as expected, but it suddenly start doing another spike right after, and the spikes always fail and consolidate to volume fade, but suddenly a few minutes later they would instantly spike up.
This pattern is similarly to $AKTX on 3/31/17, where it had a lot of failed morning spikes, but was still moving in an upwards direction.
HOWEVER, the most confusing part is how do you trade these stocks? I see these people making profit on them, and how do they know?
For me, I would not buy the consolidation of a failed morning spike, because the chances of spiking are low, however, catching the spike right when they happen is next to impossible otherwise you need to be staring at the stock 24/7 or use a machine to trade it for you. Is it possible that this kind of setup is more likely to short squeeze/have lots of shorts trapped behind the price consolidation.
What are your thoughts?
Thanks
-Jimmy220
Additional Stuff to Consider:
According to Yahoo Finance: Float: 2.85M, Shares short: 14.82k, News: European Medicine Agency gives positive opinion regarding entolimod pediatric investigation plan
Strong intraday volume, however, not much past history of spiking out
I call it the hyper parabolic. If you want to long it in the morning I would suggest letting it form a trend and then buying on the third test of that uptrend. and as we speak it's setting up for a short because it has broken the uptrend and is testing from underneath. Whether it works or not is all part of the game.
@PlanB Thanks for replying!
Welp, it's breaking out now. Good thing there were no shares to short. hahaha I suppose the biggest reason it didn't work was because it based right on that $3 level. another one for the spreadsheet!
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