Identify The Trade
$MYOS started running as soon as the market opened and its a very familiar name. If you look at the daily chart you'll see that it constantly runs up and then fads back down. Given the low volume of its run in the morning I decided to find some zones of resistance and keep my eye on it in case an opportunity presented itself. $MYOS has a 4 million share float, medium insider ownership and very little institutional ownership which makes me like it for a short selling opportunity.
Choose The Strategy
The trade I was looking for was a short sell against breakdown resistance. This type of trade typically has the characteristic that your resistance level is approached, breached with some consolidation and then respected, never to see it again afterward.
Execute The Trade
After $MYOS ran out of gas and went back below my risk level, I took an entry at $1.91 with a target of $1.60's. It started to behave as it should but then the volume came back in and it was time to respect risk and get out. Looking at the full day chart, it was a good idea to respect my risk and avoid the massive headache that could have been.