Hello traders, investors, masters, and apprentices. Let's take a look at BNGO, one of the hottest genomic stocks at the moment. They have been rallying on the good news of their Saphyr system for optical genome mapping (bit.ly/38WkC75). Today the price headed against the IPO opening price but could not break it.
In the after hour trading, this piece of news was released: "Bionano Genomics Inc. on Tuesday announced its second share sale in less than a month amid an unexplained spike in its price and volume, sending shares down in after-hours trading. Bionano did not disclose a targeted number of shares nor price in its offering, but the stock still fell more than 8% in the extended session. Bionano previously sold 29 million shares at $3.05 a share less than two weeks ago, as shares traded on the open market for more than $5. The stock has since continued to ride higher, closing at an all-time high of $9.14 Tuesday. Bionano shares traded for less than $1 for much of 2020, before prices..." (on.mktw.net/38WIsQ8)
Well, despite the fall (mainly on account of the news, I believe), BNGO is on a very bullish trend so it seems like this may be a good opportunity to get in because the price dropped to a historic level that was strong resistance in the past (white rectangle) and would likely become support now. That level is also our first fib retracement. There is a good chance the price will hold there. BNGO rallied over 1000% the past month and the indicators on the monthly, weekly, and daily still show bullishness. I am most likely entering a position tomorrow. I have traded BNGO a couple of times the past week for some decent profit. If this support holds it may be an opportunity to start a long term position. Price could obviously fall from here but I think it is worth keeping an eye on this one and see how it reacts to the support tomorrow.
Daily chart:
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Huge drop pre market:
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Entered a position during pre market. Already 12% up!
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The magic of TA: look wehre BNGO has been sitting:
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If you bought BNGO at $7.45 yesterday like I did you would be pretty happy now. :)
Hi, thanks for the tip! Do you think there's a chance he'll get to nine more again?
Safe_Trades
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@janoki75, you are welcome. That is what we hope. A lot of shares coming to the market so that dilutes the price for the time being. BNGO is a good long term stock. You can start scaling in here. We can't be chasing the bottom otherwise we never enter any trades (no financial advise though). Safe trades.
Gamblerman
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Amazing how BNGO took three months of RSI build-up to explode last year.
Too long a wait.
RSI divergence getting negative now.
Ready for some type of tumble.
Safe_Trades
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@Gamblerman, I am locking in profits as we go. Amazing swings on this.