I’m constantly searching the market for my favorite setups.

Typically, I’ll find these setups by paying attention to my market scanners, which I show live to my members in the chatroom.

I might even be alerted to a particular stock through breaking news or a call out from a moderator in the chatroom.

Once I’m confident that it’s one of my top setups, I’ll elaborate on the idea to my members and then look to enter a position.

That’s what happened in XCUR.

I spotted a long consolidation with volume creeping up, which caused me to take a closer look at the stock.

Specifically, as I told my Biotech Breakout members, I liked how the stock broke above the 20d and 50d MA after consolidating near the lows for an extended period. 

As a result of the consolidation, volume uptick, and price breaking above the MAs, I planned to enter the position around $0.20, targeting a move towards the upper $0.20s.

My stop would be placed around $0.17.

The Trade

After breaking down my thought process and providing my game plan to my members, I got long the stock on the 28th of February at $0.197.

The following day, the stock traded right into my target area of the upper $0.20s, and I sold my position at $0.28.

The result was a 42.13% return. 

The Bottom Line

It’s not every day that I can achieve a 42% return on a trade. 

However, the possibility of doing so is one of the reasons I love trading penny stocks versus large-cap stocks.

With this trade, the key takeaway is that the stock had consolidated for a significant period and then experienced an uptick in volume AND the reclaim of the 20d and 50d MA.

That setup and price action confirmed the consolidation breakout pattern and got me involved in the trade.