Here we have a trade in APRN that I was contemplating keeping for myself as this setup appears almost too good to be true. This is a popular stock as of recent, however, it should pointed out right away that the marketcap on this is tiny and therefor this kind of trade does require some experience as penny stocks are very volatile.
As a crypto trader at heart, I see much similarities between low cap stocks and cryptocurrencies, which for me personally makes penny stocks some of my favorite assets to trade.. especially when we have something such as exhibit A here in Blue Apron that has done 3 major bullish things that I love to see as a trader:
#1 ) APRN has broken bullish out of a downward sloping trendline (in green) that has been significant in keeping the price down almost year to date.
#2 ) We have some conviction that this could be real in the fact that we have broken not only major resistance, but have also just broken the .236 Fibonacci level as well, a great level to long when price is having a breakout.
#3 ) Classic bullish divergence on the RSI on a significant timeframe which only means that the price of this asset has a TON of pent up bullish energy waiting to be unleashed potentially.
If the $4.46 (.236 fib) is held as support on this daily chart, a move to $5.98 could be our first target before any real resistance is found.. 30% to the upside from where we currently stand.
Lastly, and it almost goes without saying, anything below out .236 fib level is bearish and we want nothing to do with it should a daily candle close below it OR if we gap down underneath the .236 level at the daily open.
As a crypto trader at heart, I see much similarities between low cap stocks and cryptocurrencies, which for me personally makes penny stocks some of my favorite assets to trade.. especially when we have something such as exhibit A here in Blue Apron that has done 3 major bullish things that I love to see as a trader:
#1 ) APRN has broken bullish out of a downward sloping trendline (in green) that has been significant in keeping the price down almost year to date.
#2 ) We have some conviction that this could be real in the fact that we have broken not only major resistance, but have also just broken the .236 Fibonacci level as well, a great level to long when price is having a breakout.
#3 ) Classic bullish divergence on the RSI on a significant timeframe which only means that the price of this asset has a TON of pent up bullish energy waiting to be unleashed potentially.
If the $4.46 (.236 fib) is held as support on this daily chart, a move to $5.98 could be our first target before any real resistance is found.. 30% to the upside from where we currently stand.
Lastly, and it almost goes without saying, anything below out .236 fib level is bearish and we want nothing to do with it should a daily candle close below it OR if we gap down underneath the .236 level at the daily open.
