It’s almost that time of the year again! I’ll be out until next week, and so before I head out, I wanted to wish you all a Merry Christmas and happy holidays! The markets are closed tomorrow, so enjoy the long weekend, and I’ll see you all next week.

Of course, I wasn’t going to leave you guys hanging.

Before I leave, I want to go over a trading plan I shared with you two days ago and explain exactly how I could call the move in this penny stock so well.

I wrote about AABB two days ago and provided a detailed game plan for the stock and setup.

You might be wondering, if the game plan was spot on, what is the point of reviewing it after the fact.

Reviewing plans or trades is essential when they don’t work and when they do work.

Traders need to note exactly why a game plan was spot on OR why a trade did not work as initially planned.

So before we get into the review, let’s freshen up on the basics.

What is AABB?

According to Yahoo, Asia Broadband (AABB) focuses on the production, supply, and sale of precious and base metals primarily in Asian markets. It operates AABB Gold Token, a minted mine-to-token gold-backed cryptocurrency, and AABB Wallet.

The stock has been on an impressive run recently, up 38.71% over the last five days and 124.15% over the previous three months.

Year to date, the stock is up 1947.62%.

Reviewing the Setup and Game Plan:

My game plan, which I posted two days ago:

“The stock broke out of the consolidation yesterday and closed the day up 25.69%. The volume significantly increased yesterday versus the previous day’s session, which indicates to me that there might be further upside to come.

Going forward, I am looking for the stock to put in another higher low in the low $0.20s for a possible entry.

If that materializes, I will look to get long and target $0.25 – $0.30 as my exit target, as that is where possible resistance exists on the daily chart.”

Now let’s see how it played out.

The following day, the stock popped higher off the open and appeared to have failed to hold in the mid to high $0.20s.

Then the pullback which I had planned and prepared for came.

The stock pulled into the low $0.20s (highlighted yellow), found support, and put in a higher low across multiple time frames.

That might have been a solid entry and was the same move I had planned for.

After that, the stock quickly pushed higher and regained the VWAP.

Shortly after putting in the higher low, the stock traded towards my planned target areas of mid to high $0.20s.

Going forward, I will be on the lookout for the stock to put in another higher low on the daily chart, which could be the start of a bullish flag forming on a higher time frame. The higher low might also signal that this could be the beginning of a more significant move waiting to happen. I will be looking for the stock to make a higher low and find support around $0.20 for possible entry.

Jeff Williams

Jeff Williams is a full-time day trader with over 15 years experience. Thousands of entry-level and experienced traders alike – day-traders and swing-trade small cap stock traders – credit Jeff with guiding them to turning small accounts into big accounts.

Jeff’s "Small Account Challenge" shows people how to transform accounts from a few thousand dollars into $25k, $50k or even $100k.

Learn More

Leave your comment

Skip to content