$BLIN Pushes For A Fade

Identify The Trade

$BLIN gapped up large over 100% so this immediately caught my attention. After the initial premarket move, it went even higher trying to reach 200%, a very big move and it was something with which I wanted to be involved. The company stats showing the stock at a float of 3 million shares means this stock can move like a rocket ship and the institutional/insider ownership is not high enough to warrant too much concern.

Choose The Strategy

The strategy for this trade was to get a short sell entry below the key breakdown level. In the premarket there was an obvious bear flag showing and this was the strategy I wanted to play. So before the market opened I was looking for a weak open along with a retest so I could get an entry. My expectation was that after the open we wouldn't see anything beyond $3 again.

Setup, Entry and Exit

Execute The Trade

The initial market open showed some strength, but it was quickly decimated into a lower low. On the restest I got an entry at $2.70 and had my risk level already set. The volume started going my way, but right as the wedge reached its equilibrium point, $BLIN squeezed up and I had to cover the short. After this move up, I identified a few other zones of resistance that was I very interested in playing. This allowed me to re-enter a position at $3.30 and the double down at $3.40. My new risk level at $3.70 was tested on low volume which led to a very hard sell off and an easy hold until my price targets were reached.