$AWX Running For No Reason

Identify The Trade


$AWX didn't have any impressive reason to catch my attention until it squeezed from $3.40 to $4.20. After that squeeze I was interested in taking a position. This stock is a super low float so it can move on little volume, need to take care to follow my defined risk level.

Choose The Strategy


The strategy for this trade was to use the high of day with a little head-room above as my risk level and looking for a reversal for the rest of the day.

Setup, Entry and Exit




Execute The Trade


I got a good entry right where I wanted and there was a very strong retest and break-through to my risk level but that was rejected very hard, which gave me confidence this trade could work out. I took off 1/2 the position at 2:1 reward:risk and wanted to hold it as long as possible to make 4:1 on the other half if possible. However, the stock pushed higher for the rest of the day, and I finished break even on the other half of the position.