If you’ve been following our blog odds are you’re sitting on some profits. 😀
Congratulations! But remember to protect your money!!
Now is the perfect time to sit back and evaluate your positions, re-confirm your strategy, and reestablish your risk threshold for tomorrow. Be sure to set your stop-loss orders and manage your risk adequately.
Both of our trade calls have performed very well over the past two sessions, but for now let’s focus on $BRKK.
First we need to mention momentum and how it can affect the stock’s PPS. As you can see on the chart below, when news of the settlement hit $BRKK gapped up in price early in the morning, and scooped its way up to a new high by EOD Monday.
In my opinion, the gap in price constituted too much growth too quickly, and the price corrected as expected on Tuesday. This type of panic sell pattern is common and welcomed by most traders. In fact the strong recovery mid-morning Tuesday is evidence that we weren’t the only traders playing the dip.
Tuesday morning’s sell-off resulted in a three wave Elliott correction pattern. The move found support at $0.016 and recovered quickly to an intraday peak of $0.0198. It then bounced off its $0.016 support level three different times before settling at support EOD Tuesday.
There were ample trading opportunities throughout the day, and if you’re holding a long position today was exactly what you wanted to see. We corrected the Monday morning gap and still had enough momentum to continue seeing a strong upward trend. Volume was also stellar and provided plenty of liquidity for the stock to move all day long.
Now, what gets me really excited is $BRKK’s current market capitalization of just $3.5MM. It appears to be extremely undervalued considering the company just won exclusive rights to the #refcam patent and was awarded a $2.4MM settlement from iSee Automation Inc. just this week.
Once the dust settles we should be see $BRKK once again begin to ramp up operations and continue to take the social world by storm.
Oh, you haven’t seen the #refcam in action? Check it out here.