Took 200 shares short at $3.94 overnight looking for it to bounce back off of resistance at $4.  

Took profits too early.  Now down to the 3.60's

Stock has been on a steady multi month decline.  From 1/6 to 1/18 it used the 3.90's to low 4's as a support level before breaking down on 1/19. Made it all the way to the 2.80's before bouncing up on a news catalyst.  News was a simple "non- binding" letter of intent to purchase an old facility that is not even in use anymore.  This would give them more vaccine production capabilities. However, the letter does not go into any detail on the current condition of the building.  But knowing that it is not in use tells me that it would need major inspections to be put back into production.  In my mind this is just a letter that should read, "I might buy your empty building sometime in the future, if I feel like it." 

Either way, the stock was on its third green day into the after-hours.  It could not break the $4 dollar mark.  Previous support became new resistance!

I took a small position to protect since the stock does have a history of spiking.  In at an average of 3.945.  Plan was to see it get back down to the low 3.80's since that was where it morning spiked on the third day, and to stop out at 4.  Risking .06 to make .12 or even more.  A 2-1 ratio, not the best.

I was up at 6:45 since my IBKR account starts trading at 7.  It held on around the high 3.90's all premarket.  I was tempted to just take a tiny loss and not hold into the open.  However, I stuck to my plan and sold withing the first minute of open. Glad I waited but I could have gotten more.  

Would rather take profits too early than overstay my welcome anytime!!