Not long ago I wrote and article called ‘Sky-mobi Dials 911 As Citron Moves In For The Kill‘. Essentially the article comments on Citron’s $3 price target on MOBI back when the price was much, much higher.
Since the free fall we’ve been flipping in and out of MOBI taking advantage of short lived bounces. My last successful bounce trade only landed me about $500 but I’m back in with 2k shares at $9.05 and thinking it could break major resistance at $9.20-$9.30 today.
Keep in mind I’m a momentum based trader and only looking for short lived opportunities in this bounce. Usually my goal is 5-10% or around $.30 – $.50 cents per share.
The reported short interest on MOBI isn’t massive mind you, but there is good reason for existing shorts to buy back today heading into the three day holiday weekend. Using the chart we can see a number of strong $2-$3 bounces on the way down. The first was at the $13 range, then again at $10.50 range several days later followed by another bounce at the $9.50 range. This bounce that I’m currently trading started at the $8.00 price shelf and could very well see $9.50 – $10.00 if not $11.00 before MOBI turns back down.
Again, with big resistance at $9.20-$9.30 there is a chance I’ll just unload if it can’t break that having tested it once today already. However, a major break of $9.20-$9.30 will likely bring in a solid round of buying causing MOBI to spike into the close. All speculation of course but isn’t that what momentum based trading is all about?