This stock is clearly in a strong up trend. The trade here is simple. Volume
is generally greater when the stock is going up versus when the stock is going down. Here's an example: Look at the previous 3 red days. Compare the volume
of those 3 days to the volume
of the few green days before that. This suggests that the sell off is most likely short-term profit taking.
Look for a reversal pattern/candle to form, and then go long. I would expect it to at least try to retest the previous highs, but it's too early to say. Right now, I am just looking for a reversal signal. A nice spot for a reversal would be at the 20 EMA
, just like last time.
- Andre, StockBros Research