GNC - Bears vs Bulls
Updated
I entered GNC last night before the market closed at 0.81. I think I entered at the highest price of that trading day (my bad) however this is the going to be my play:
Entry Price - 0.81
Exit Target - 1.00
Current price - 0.80
Based on Level II, both, the bid and ask, are lower than the current price. I am expecting a price drop as soon as the market opens of approximately 5 - 10 cents. I plan on increasing my position once that happens. After this, I'll probably have to hold for a few days to get my exit target.
Support - 0.4
Resistance - 2.24
If things go south, I'll exit all my positions at 0.5 assuming a very dangerous loss. I hope this doesn't happen since the charts are looking good for a bit of swing trading.
Anyone else trading the stock today? I would appreciate any comments from the experience day traders out there.
Entry Price - 0.81
Exit Target - 1.00
Current price - 0.80
Based on Level II, both, the bid and ask, are lower than the current price. I am expecting a price drop as soon as the market opens of approximately 5 - 10 cents. I plan on increasing my position once that happens. After this, I'll probably have to hold for a few days to get my exit target.
Support - 0.4
Resistance - 2.24
If things go south, I'll exit all my positions at 0.5 assuming a very dangerous loss. I hope this doesn't happen since the charts are looking good for a bit of swing trading.
Anyone else trading the stock today? I would appreciate any comments from the experience day traders out there.
Note
Here are some of the observations I've made and the lessons I learned while holding this stock:1) If a stock closes at a significant gain (4% <), the price will most likely drop the next day (it's too late to ride the wave)
2) Try to buy shares when their price is close to the support levels. There's a higher chance of the price bouncing back from its support rather than dropping below it.
3) If buying before the market closes, don't be afraid of entering a stock who's price closes at a loss. If the entry set up is there, you're most likely on time to ride the wave the next day.
Exiting my position at a loss (0.70). However, I will be back to trade this stock.
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