BBAI - a penny stock in a hot sector LONGBBAI fell on an earnings miss on Thursday March 7th. The downtrend of 30% was basically a
slow flush. Penny stocks are volatile to begin with; this one is in the hottest of subsectors.
Price is in the hard oversold area just above the second lower VWAP line on this 15 minute
while the RSI lines are in the mid-30s showing the price weakness. A predictive forecasting
algo from Luxalgo suggests a bounce from the present price. I will take a long trade targeting
a return of 25% over the next week with three targets and partial closures of 25% , 50 and
25% respectively with the targets shown on the chart. The stop loss is 2.50 just below the
pivot low of 2.5. This trade idea demonstrates how penny stocks have great volatility and
how if entered well can result in 25% weekly which if compounded regularly can result
in rapid account balance growth overall. The trade is to be managed with partial closures
directed by alerts and notifications as well as a trailing stop loss of 5% once the price gain
has reached 10-15%. This minmizes effort and screen time so that they can be spread
across a wider variety of trades.
