$ACHV Can’t Keep It Up

Identify The Trade


$ACHV showed a very large gap during the premarket session. Almost reaching +100%, which meant it caught my eye and I needed to do some analysis on it. A quick look at the daily chart of this company is enough to show you why you shouldn't ever consider buying the stock. It has a very, very low float and there is substantial institutional/insider ownership of the stock. You definitely don't want to let this one get away from you, it will run fast and hard. Respect your risk.

Choose The Strategy


My analysis showed that $ACHV was gaping into a resistance area that I could risk a short sell entry off of at about $5.50. So my plan was to try and get an entry close to that point and target the low $4.00's for exits. Because of how this stock gaped up almost $1 on very low volume, once $5.00 is breached, it is very likely to never come back.

Setup, Entry and Exit




Execute The Trade


After the market open I was watching this stock closely and got my entry in at $5.10 which was a poor entry but I held it against my risk level. Although $ACHV never managed to get close to its premarket highs, I still let the stock violate my risk level for a good amount of time, which I shouldn't have. In this situation it worked out well for me -- but its a reminder that crappy entries are harder to hold and I need to work on being patient for the retest.