I'm on the swing trade path currently and this type of short term trade is not one I've done before. Didn't have time to post this thread before close but here it is anyhow.
NNDM has hit my first target on previous thread and although I dont think its bottomed yet I think there maybe be a good short term trade here.
I'm using short term atm call options for defined risk and high yield.
Earnings is tomorrow and so a volatile reaction is likely and that volatility can help my calls land in the money with potentially increased implied volatility.
Ok so the chart -
Price has hit a 0.618 fib extension from the top.
There are supportive tops in this area.
RSI is oversold and also the most oversold since the 2021 high.
Price has passed through 500Dma for the first time ever and this will likely be an extremity that becomes a fakeout.
Earnings seems well timed with all of the above.
A bounce up to 0.618 retracement of the previous peak could see NNDM find resistance at the upper trendline of the contracting triangle somewhere around $6.2 and perhaps it will tag the 200Dma.
Not advice.
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Up 5% pre market.
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Now up 8% pre market and price has tagged the 500Dma already. This will likely be a pump gap.
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13% top today. Thats a good start.
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And price now back above 500Dma.
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Fakeout through 500Dma. Stop trading against trend omg. Patience........................................................................................................................................................................