Transcription
Hey everyone, Tony Ivanov here with another video lesson. Now, I'm sorry I have not made a lesson in like the past month. Now, as you can tell, I am in a new house, so I was busy moving. I traveled to Cancun for a week, and just, just taking care of some personal things and some business things on the side. So, I do apologize that I have not made a lesson for you guys.
With that being said, I hope that you guys keep up with me on Twitter and Instagram because I do post there pretty regularly. And I posted today about CAPR, and that's the stock I want to talk to you guys today about in this lesson. So, I took trades on CAPR as early as pre-market. This is one that was on my watch, and I just really had the idea that this could potentially test eight or even nine dollars today. And right now, it's trading at around 8:40. Looks like I might break out over nine dollars. So, we're gonna break this down, how I found it, why I thought it was the best stock today, and exactly how you could trade it and make some pretty sick profits. Alright, let's get to it.
Alrighty, so here is my screen share. This is the screen that I share every single day throughout the market open within the Trade By The Chatroom. So, all of the members can watch my screens, they can see exactly what stocks I'm watching, what my levels of support and resistance are, and they can also use my scanners like Equity Feed and Trade Ideas. So, it saves them a bit of cash on that side because they don't necessarily need to buy their own scanners.
So, down here in the bottom right corner is CAPR. And let me just clean up my screen real fast, it's kind of jumbled up. So, CAPR has crazy volume today, 237 million dollars traded. Volume today is around 31.6 million, 147,000 trades, and the float is only 2.36 million shares. So, that's very significant. We can see the next runner-up has only 16 million dollars traded. So, obviously, CAPR is the one that everyone is focusing on, right?
So, CAPR released a news this pre-market. They released the news at 6:00 AM in the morning, announces positive results from its interim analysis in the hope to trial to treat patients with Duchenne muscular dystrophy. I think I'm pronouncing that right. Obviously, very good news, positive results on the biotech company, that's gonna lead to lots of hype and lots of volume. The fact that there was a low float, only 2.36 million shares, made me really just focus on it. And then the first thing I did was I looked at the one-year daily chart. And you can see that 52-week highs is around 15.85, just around this level. So, has lots of room to run. Other levels of resistance would be 12.30, around 11 dollars. Had some resistance in the 8.80s, and then the main resistance that I saw was around 7.50 right here. And then we have similar resistance down here, but the main level was really 7.50, this big double top, $11, 12.30, and then the 52-week high of around 15 dollars and 80 cents.
So, this was gapping up and it was consolidating. Let me get the pre-market chart up. I gapped up pretty huge, and then it started to consolidate along this 5.38 level. So, if I was a perfect trader, I would have identified this level of support and then just had orders waiting down there in the 5.40s. But I was a bit late on it. I wasn't too confident. I wanted to see the volume coming first, just to have that kind of confirmation that, yeah, this is one that people are watching. So, once I saw this volume pop right here, that's when I hopped into the trade. I had an average of around 5.78, so not the best average. I was gonna have my stop be the brick underneath 5.50 and then just re-add into the 5.40s if it caught support. So, not the best entry, but I was waiting to see if there was gonna be volume because this could've just become an all-day fade. No one really knows. So, I got in on the volume push. And really, the main thing I was thinking of is that this has potential to hit eight or nine dollars at least. So, low float, has good news, the the recent market history has been showing us massive runners like CEI, VI, SL, RVLT, all these massive plays. So, we have to make sure not to underestimate the potential of these plays. That's the most important thing. Because when it comes to trading, you don't only make money when you buy, you make money when you sit, right? The longer you can hold an uptrend, the more money that you make. So, it's not only having good entries that will make you profitable, you have to have good exits as well.
So, you can see right here is on Twitter. CAPR can be a decent one today. Pretty weak breakout in pre-market from 6:20 to 6:40, but the daily chart shows lots of range with potential up to eight or nine dollars. So, I got in in the 570s, and really, the number one main exit target I had was 7.50, that big resistance that we saw on the daily chart. If it could break out 7.50, it could test, you know, nine, ten, eleven dollars. But my main plan was just to go for the 7.50 resistance. We had the morning spike, opened up, caught support in in the 6.70s, spiked up, and I sold all at 7.50. Obviously, sold way too soon because it shot up another dollar per share. So, I mean, I could have let the stock play out, but at the end of the day, I had the plan of selling, taking profits at or above 7.50, and I chose to lock it all in at that point.
When they came on down, the next area that I was looking forward to have potential support wasn't the pre-market high because this pre-market high was only made in the last three, four minutes of the market open. It doesn't really count as previous resistance holding as new support. The main level of resistance that we made in pre-market was around this 6.35 line. So, I wanted to see how it would hold that 6.35 line. So, the way that I played this was a bit more advanced. This is kind of something that I have noticed with lots of these high volume, low floats is that the first time they kind of have a big break underneath of VWAP, they're always gonna have at least a bounce and either recover. If they don't recover, then they're gonna reject. So, the first bounce I played, I got in 6.54 based on level 2 time and sales. I got in 6.54 and I sold those shares at $6.99 once the resistance showed. But like, this is basically a scalp. If you have a small account, do not focus on this. You want to focus on the simple fact of the stock retesting the pre-market resistance at 6.30s. Once you see a catch that's support and and it has very long bottom wicks at that area, it's a very good level to play off of and risk off of. If you can get in near that price of 6.35, you can risk say 6.25, risk 15, 20 cents a share with the possibility that this stock can retest the highs. And usually with these high volume, low float plays, it's not just gonna pop up and then be done. Especially if it has news. The only stocks that have a morning spike and then just fall down below of VWAP and then just die off, the only ones to do that are pumping dumps with no news. See, CAPR was not a pump and dump. It had massive organic volume and it had news. So, people had a reason to buy it.
So, with those things considered, it is very profitable to be identifying that kind of main support where shorts can believe that this is downside because it is underneath of VWAP. And then essentially, what you're playing is the fact that shorts are gonna get squeezed. So, identify that support and get in near it, risk the break of it, and then just sit and wait. Let the stock do its thing because more likely than not, it'll test that high of day. And as we can see, CAPR did that perfectly. It broke out of high of day, hit 8.74. So, that could've been a very sick play from 6.40s to 8.40s. You make two bucks per share on a very simple pattern that is very reputable. And that's what I want to mainly focus on today with you guys, identifying those simple, simple patterns and taking advantage of the fact that previous resistance can be new support. And now, when we have a low float stock with good news and massive volume, it is not gonna die right away. It is not going to be that simple. So, identify the areas where you can find support and once you start to see those long bottom wicks and holding and consolidating at that price, it's worth the risk to get in. It's, it's not a guaranteed play, of course, you can lose. No strategy is 100% right. And if someone tells you that theirs is, they're bullshitting you, hands down. No one is right 100% of the time. But if you can define these low-risk, high-reward areas where you can only risk say 5, 6% and you can profit 20, 30%, that is a profitable strategy. And you all you need to do is just focus on that and repeat that over and over and over again.
Alright, so that's CAPR. Hopefully, you guys enjoyed this lesson and I'll see you guys in the next one.
I'm assuming that if you stuck around all this time, you must have really enjoyed that video lesson. If you want to continue your learning with me, I just opened up a free trading workshop. You can register completely for free, no strings attached, and you're gonna get access to three training videos that break down exactly the secrets that no one is telling you about how you trade profitably. And I'm also going to be giving you access to my top PDFs. Number one, my free book, "How to Day Trade Every Single Morning." Number two, my personal trading checklist. Let me show you right here. This right here that I use every single day to plan my trades. And also, I'll give you a list of the top 10 most profitable trade strategies of 2019. So, you can check all this out in the first link down below. And I really hope to see you in there. Keep in mind that I give out these workshops or once a week, and there's only about 30 spots per week. So, make sure you get in there now. Click the link below and I'll see you inside.
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