https://www.youtube.com/watch?v=zSClm7bDAsU&feature=youtu.be
I discussed taking this stock as a potential breakout trade, it went to 4.25 very quickly during market open I waited for it to hold and consolidate but dropped and I didn't take the dip due to the fact it was low volume and the drop wasn't substantial enough to warrant a decent risk to reward ratio. In reality this was not keen to break high of day and as Tim has said it's ready to crash since it's so over extended.
Posted Aug 31, 17 11:56 AMbySAndrews
Categories
Price Action: Afternoon Fades, Price Action: Breakouts, Price Action: Consolidation, Price Action: Sideways Price Action, Technical Analysis, Trader Checklist
Tickers
MGTI
hey there. if you go back 5 days LBUY also had low volume and tanked to a support level before rebounding. what ive learned from these kinds of stocks is that its VERY hard to retest HOD with such a huge drop, and low volume is to be expected because the stock is over-extended and buyers aren't interested in it anymore at that high price. I wasn't in chat today so I missed MGTI but I watched LBUY tank and didn't dip buy for those reasons but it's something to consider next time this happens.
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