Sharing another fantastic Panic/Sell-off dip buy opportunity in the OTC world. The best one in 2020 so far, and personally the best one I had the opportunity to witness and trade.

Cytodyn Inc (CYDY) arguably one of the most interesting OTC stock in the year 2020, started its initial run in Dec 2020 and set a high of 1.64 in February 2020. Being in the hot corona virus sector of the time, it was getting a lot of attention early 2020. On March 27 2020 is when things got really started, had a Covid 19 related PR and the stock cruised to 3.50 over the weekend. After that run, CYDY held most of its gains and started to consolidate nicely, with fading volume, even better...This was interesting to me, and I kept this on my watchlist. I am not usually interesting in higher priced OTCs because of their slow/non-volatile nature in terms of %gains, unless something crazy happens....

 

On June 19th, CYDY started to pick up some volume, and had its first strong day, closing near multi-month breakout level of 3.80. The next day stock had a nice gap-up into b/o area and started a nice upward move holding trend, and it never looked back. CYDY started its massive run and went full supernova to 10$, that is a 200% move for this stock in a week. We have seen this kind of run in the OTC world before - CVSI had a similar run back in 2018 when the marijuana sector was hot. I remember watching Roland's video, of his awesome dip buy when CVSI had its first major red day on Aug 20 2018. 

CVSI on 8/20/2018 is clear example of the amazing opportunity these kinda moves present, studying past really helps....And on Jun 30 2020, CYDY hit 10$. But the stock showed clear weakness afterwards, and the selling pressure began :) From CVSI, the potential for massive drop on these kinda plays was very clear, so patience was key. Enjoy the video! 

Timestamps for first dip:

03:50 - 5$ was a key psychological and technical level for this stock on the drop, was watching the price action around the area - mainly before it hits 5$.

06:30- 5.07$ bids started to stack up, but 5.08 sellers held.

07:25 - 4.90$ started to hold and lot of prints going through at that level. But failed again.

07:51 -  4.80 bid vs 4.72 ask and 4.80 bid is not going away.

08:04 - We get the uptick, and dip buyers/short covers started piling in :)

 

- N3N707