Just sharing my analysis on one of my favorite setup ever - OTC Huge Panic Dip Buy. On 04/23/2020, Decision Diagnostics Corp Com $DECN presented an amazing "predictable" psychology of market, especially in small cap land - buy the rumor and sell the news. Was keeping $DECN on watch for the last month or so as this has been a relevant Covid-19 related OTC stock.

Premise - $DECN was about to provide an update to their Covid-19 Test kit on April 23, 2020. (PR - https://finance.yahoo.com/news/decn-updates-progress-genviro-covid-131500047.html) The price action on day before strongly indicated an action filled day on April 23rd. The conference call is set for 10am EST and all eyes are on this ticker.. Enjoy the action.

 

I recorded this to re-watch and analyze price action trend change with THE TAPE - Level II and Time & Sales. This is a beautiful depiction of @timothysykes's PennyStocking Framework (PSF), trends 4,5 and 6.  

PS: Watching Time & Sales has been a major part of my dip buying process and this can give a lot of conviction. Level II aids in guaging the direction of price action, and Time & Sales helps in guaging the velocity of price action. I will also note key support points in the chart beforehand, but having no bias of any support holding has helped me a lot. Let Price Action tell you the story...

 

Time Stamps:

 

00:00 - Around 10:20 am EST, we can see price action getting heavy.

00:15 - Can see huge orders in Time&Sales with massive volume to downside, first signs of crack, and panic getting started - the number 4 of PSF.

---- Can see massive trades going through in Time & Sales and its getting heavy---

02:39 - This is the first time the Bid's showing any kind of strength, you can see there are massive prints and heavy soaking at 0.22 and still failure to crack 0.22. Also, worth noting stock is down around 40% - Shorts will be looking to cover for profits and dip buyers to bring strength back.

03:01 - Can see the biggest intraday volume here and yet not being able to crack 0.22. Also able to see buyers jumping the best ask on Time & Sales. All signs of bottoming here - the number 5 of PSF about to happen.

03:28 - Confirmation of solid wall of buyers, the number 5 of PSF. Now, shorts will be trying to lock their gains and dip buyers to piggyback this.

---- Awesome 80% bounce-----

18:47 - Price approaching the short seller favorite g/r level, aligning with VWAP. 

18:59 - Massive ask on g/r level, but it gets eaten through, price action still showing strength

20:06 - Can see that 0.369 level ask with hidden size not willing to crack. First signs of huge selling pressure and start of number 6 of PSF.

20:46 - Confirmation of massive wall at 0.368 and heavy soaking of this area on Time & Sales. Another favorite part for short sellers - number 6 of PSF.

27:13 - First time signs of some "local support" - chances are shorts might cover here and dip buyers try to bring back strength.

These are the predictable part of volatility and it is just amazing to witness these beautiful gift from market. Hopefully you guys enjoyed this as much as I did!

 

See you all at the top!

- N3N707