Identify The Trade
$GENE had a strong flag pole push up into the $1.90's with an equally strong fade back to the $1.40's which typically means it's DOA come market open. However After MDGS halted and went into a lull, GENE caught the attention of some traders and started moving.
Choose The Strategy
My strategy for GENE was playing off of the premarket resistance levels around $1.70 and $1.90. I wanted to get an entry at these prices targeting a move back to the $1.40's for a decent risk:reward ratio.
Execute The Trade
My execution of $GENE was good then bad. My first trade could be called early, but I exited with a manageable loss and was ready for the follow-up reshort with the high-of-day retest. I got a great entry at $1.98 with my risk at $2.12, but I was spooked out by price action and covered early. Had I held and let things test my risk, I would have made a cool 20% gain.