KERN Trade on Nov 6, 2020 15:07 from VadimT7: Tradervue User Stock Trades.

Trade criteria that made me enter the trade:

1) Cyclic RSI at its bottom right before entering the shaded zone.
2) At 100-day EMA, VERY STRONG support level.
3) Active on the day => high volume meaning that the traders are still watching it -> this makes the support level even stronger.

Important: The more traders watch the stock, the higher the chances that the significant SUPPLY/DEMAND or Support/Resistance levels will be effective and will work.

Stock was in a downtrend, but the fact that it was located at the 100 EMA meant the start of the accumulation area for many traders which would make and did make the stock go higher.

First price target: 4.33, previous support that might become a resistance. Don't sell on the next day at this level if the stock is showing strength. This level might actually be insignificant (check the volume profiler to confirm this). However, if the stock does hit this level and reverses to move lower, it's the continuation of a downtrend making this stock ineffective for long trades - the daily chart is in a downtrend and may have hit a resistance level though not too strong. Is the stock weak given the current conditions, especially if it fails to go through a weak resistance level? The cannabis market is going to be strong in the near future.

Second price target: 4.5 because of the evident supply level, the stock dropped sharply at this level after being in the distribution area, thus expect this event to repeat unless it shows super-strong buying volume on green rising candles and doesn't explicitly show signs of doji or shooting-star candles on high volume while at the top (which in this case would mean that the move has ended).

Takeaways:

1) Be Wise and Take the profits, at least a portion, while the market is generous
2) Sell at open as the profit takers will make the stock go down sharply as can be seen here. In this case, it went all the way to close the gap => At this point, expect the stock to EITHER make a reversal if the market (SPY, Russel 500) shows signs of an uptrend => enter the trade in small position. Add when seeing that the reversal is confirmed. Higher highs and higher lows. EITHER to continue the daily downtrend as the gap close confirmed the strength of the downtrend of the stock + is at daily resistance on the daily chart => Always bounces even when changing trends!