Blue Hat Interactive Entertainment TechnologyNASDAQ
Description
⋅
This badass triggers many people's curiosity today.
226 000 M contracts traded in a day! Waw! I know! It's a penny stock. Still...
I had to check what was going on of course.
Found something very nice. A beautiful RSI bullish divergence.
RSI uptrending whereas price is downtrending.
This usually does a great job at foreshadowing a reversal.
However ... on the market, good odds will never be even close, whatsoever to certainty.
... and with this stock a movement against us would entail a lot of damage.
So if you trade it on the long side, I would at least wait for a break and close its current structure and most importantly be extra careful with risk management.
Namely, instead of managing risk I would dramatically decrease my posicion size.
So I still see a nearly immediate 3 r/r trade, but a wrong movement could easily entail nearly a 100% loss of my capital invested into that trade. Well 100% of a 100usd trade is not more than 1% of a 10000 usd trade.
MANAGE RISK.
I am not a financial advisor. Just a non certified price action analyst, position trader, trend follower and semi passive investor.