Hey guys and gals,
On Monday, Ocugen Inc. (OCGN) was one of the hottest stocks on Wall Street…
Of course, I thought I was a genius locking in a $5,500 winner after the stock popped by nearly 40% from Friday*…
OCGN was part of my Monday Movers watchlist, which was sent out on Friday… and the stock exceeded my target.
When I looked back this morning and saw the stock at nearly a buck, I was kicking myself.
In other words, the stock was up more than 190% from my initial entry in just a few days.
Since I missed out on the bulk of the move, I want to go back to review the trade.
I’ll show you how I spotted it and what I could do better the next time I see this pattern.
On Friday, I sent out my Monday Movers watchlist at 2:29 PM ET.
I mentioned OCGN when the stock was around $0.33.
The reason I put this on my watchlist was that the chart was a screaming buy to me.
Notice how the stock made a large run up last week and pulled right into a support level?
That indicated there was demand for the stock and the buyers may overpower the sellers around there.
Typically, when I see this pattern, the stock rebounds off the support level and tries to make a move and retest the high.
Here’s what I sent out on Friday…
But I’ll trade it small if I do cause it’s a $.30 cent biotech. Can’t find a catalyst on this but as far as charts go, I like it a lot. Buy zone is $.33 – $.35, goal is $.50ish and the stop loss is <$.28.
I was able to get in right around my buy zone… and the stock started to make a move into the close.
On Monday morning, the pattern played out just as I suspected… and here’s what I sent out in the pre-market, letting subscribers know about my moves.
I took 30,000 shares off at $.43 and 20,000 shares off at $.462, over 40% on my investment Friday into Monday and EXACTLY what I hope to hit. Strong patterns are often an indication good news is coming and sure enough … CHEDDAR for breakfast!
Currently trading at $.49
I debated letting it ride for what appears to be a possible breakout at $.50, but up 40%+ I just can’t risk letting this $6,000ish profit get away from me. It’s always tricky to decide how to handle letting a win run but I bought like $15,000 worth of stock here and just made about $6,000, for me I can walk away happy as hell.* As you can see one of the most active stocks on Wall Street. GREAT way to start the week.
While I didn’t want to let my gains get away from me, I could’ve taken a different approach.
Here’s what happened on Tuesday…
Of course, I missed out on the bulk of that move, but there are things I could’ve done differently.
For example, I could’ve sold half at my target and put a profit stop, and remained patient.
If I notice that pattern again, I will consider it a different exit strategy potentially.
If you want to learn more about my “weekend” strategy and how I’m able to uncover stocks poised to gap up on Mondays…
*Results presented are not typical and may vary from person to person. Please see our full disclaimer here: ragingbull.com/disclaimer