It’s been a fantastic week in the chatroom. I have loved the collaboration, banter, great ideas, and callouts in the chatroom. Let’s keep it up, gang!
It’s also been a week filled with solid opportunities. As I have mentioned multiple times this week, I have seen a significant shift in penny stocks’ momentum and volume across the board. Will this continue, or is it just a tiny window of opportunity before year-end? Who knows. But as long as it is here, my foot is on the gas!
Stock selection is critical, and that’s why I made an end-of-day trade in a penny stock displaying immense relative strength to other names on my watch list, as well as the overall market.
Yesterday, the market (SPY) was down 0.88%. Biotechs (IBB) were down close to 1%.
But one penny stock I had my eye on wasn’t.
Meanwhile, Biolife Sciences (BLFE) closed the day in penny stock land up 46.78%.
BLFE, according to Yahoo, develops, licenses, and distributes antibacterial products and non-contact human temperature screening technology. The company offers disinfecting wipes, UV sterilization technology, electrostatic disinfection services, antimicrobial textiles, and touchless vending products.
The stock recently experienced a significant run higher after breaking out of a long consolidation and seeing a steady uptick in volume. The stock ran from a low of $0.24 at the beginning of November to a high of $2.54 by the end of the month.
After hitting the high of $2.54, the stock pulled back sharply over a week and traded into the 200d MA, around $0.45 before finding support.
The run-up and the pullback presented a unique opportunity for me.
After the stock found support around the 200d MA and closed firm two days ago, the support had been confirmed, and a higher low had been formed on the daily chart.
The continuation yesterday and strong price action into the close alerted me to a possible overnight continuation play.
Not only was the stock able to find support on the pullback and regain a foothold above the 200d and 50d MA, but it also held above the VWAP all day yesterday.
As a result of the strong price action and signs of possible continuation, I looked for an entry and called out the idea and trade in the chatroom yesterday afternoon.
I got long the stock near the close, at $0.923 for a possible move towards $1.20.
The 20d MA currently sits at $1.30, and the stock previously broke down from $1.20 and gathered momentum.
Therefore I am looking for a move back into that area and below the 20d MA.