$ATTU Merger Goes Nowhere

Identify The Trade

$ATTU had some news in the morning and a gap so it caught my interest. The news was something about merging or joining with another company. It was outside of my typical range of stock price, so I could tell it was already going to be a slow day for stocks if I was grasping at straws in this way.

Choose The Strategy

The strategy was to bet against the $15-$16 range resistance and that we could get a decent pull back into the $14's. In hind-sight there wasn't much good risk:reward on this trade. That should have been obvious to me, but again this was a very slow trading day and I go sloppy.

Setup, Entry and Exit

Execute The Trade

My execution on this trade was pretty good. There was a morning spike where I got my entry and risk level defined. Unfortunately after my entry the stock just bounced off of my risk level with a rising wedge support. I waited as long as I could, then bailed on the trade when it was obviously a low volume dud.