The reasons: 1. The stock offers a low-risk entry point 2. It developed a textbook flat base setup 3. It has VCP characteristics 4. It has a high relative strength 5. It outperforms the general market 6. Volume dries up and huge volume on the breakout
Flaw: The market is still in a hard-penny environment with only 33.8% of total stocks above the 200-day MA.
Trade active
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Due to liquidity issues, I nailed half position at +10% profit today.
Trade closed: target reached
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The chart is still looking good forming another cup with handle formation. However, the liquidity is too low to hold my position. I nailed the last position at +10% profit today.