It started on Friday when I detailed in my morning watchlist that penny stock MDVX was showing a nice 52 week high breakout over a stacked 4 month resistance at 2.22. The stock had closed the previous day at 2.25 with a day high of 2.30. On Friday morning I knew if the stock opened up at 2.30 or higher and displayed early morning buying pressure and increased bids then it would definitely be a buy. That’s exactly what happened as the bids kept increasing in the early morning aswell as the spread. The spread was actually pretty scary at times as there was a 10 cent spread at one point. So I went with my plan and bought 1400 shares (close to 50% of my capital) at 2.43 when the spread gap lowered. It actually went down to around 1.36 a little later in the morning so I coulda woulda got a better price…but I can’t control everything. Some afternoon buying kicked in at catapulted this thing to trade in a range of 2.50-2.55 all afternoon til the last 30 minutes of the trading day some volume came in and surged this stock up to close at 2.65! So now I was up a pretty good bit, but I knew with all this buying pressure coming in the last minutes of the trading day that there was sure to be a gap up come Monday morning because here’s a lesson: normally when a penny stock experiences late buying pressure it usually carries onto the next trading day.
My plan now was to sell first thing in the morning if there was a gap-up. See how I make trading plans? They’re essential to trading penny stocks! Don’t trade without one! And wouldn’t you know it, first this morning the stock gaps up 10% and I stuck to my plan and sold all my shares at 2.90. If you noticed MDVX actually closed at 3.13 so I left some more money on the table, but I wasn’t greedy, traded my plan, and made a nice profit so I couldn’t be happier! Make sure you check out my hot penny stocks to watch list tommorrow morning. Thanks guys!
Here’s the chart:
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