$BNTC Lost Its Pants

Identify The Trade

During the premarket session $BNTC gapped up significantly over 100% and presented a short selling opportunity of which I wanted to take advantage. At current BNTC is a 5 million share float stock, with very low insider and institutional ownership. This means it can move quickly in either direction and its less likely to be manipulated by a large hedge fund.

Choose The Strategy

Looking at the premarket chart there are a few obvious zones of support and resistance and the daily chart shows a few old zones of resistance on the way up. The plan was to choose one of the resistance zones, in this case $5.00 and to find an entry close to there with a target to close the trade in the low $3.00 area.

Setup, Entry and Exit

Execute The Trade

At the open, there was a quick pop into a premarket resistance, but it turned out to be very unsustainable which gave way to my entry. After that it was smooth sailing with not even a single retest. This was truly a fluff pump with no legs at all.