RDBX Trade on May 2, 2022 08:05 from BanalityOfEvil: Tradervue User Stock Trades.

PLAY

RDBX – Premarket Scalp – 2nd day play

CATALYST

Redbox trending higher since yesterday, RVOL highly elevated, no specific news

TRADE IDEA

Price could touch 7 in premarket trading and potentially move higher intraday. Chart is clean up to 9 and 11.

SETUP QUALITY

B – low float, trending higher with elevated RVOL and clear resistance levels on daily chart

BIG PICTURE

Only clear gapper on the morning. Stock is on watch after ripping higher yesterday, getting massive volume with no clear catalyst

Markets are weak

• FLOAT – 8M
• RVOL – elevated
• 2nd day play
• Clean daily chart
• SPY weak testing 400
• VIX – over 30
• Short Float 10%
• Light volume in early premarket but holding cleanly over $5
- ATR - 1.16

PLAN

Watch for signs of heavy volume, look to enter on first pullback with stop below lowest candle of pull-in, sell 80% of position into strength, holding at least 20% of position to $7 or higher. Liquidate 100% of position by the time I need to leave for work at 7:30am central time before market opens.

REASONS TO SELL

• Tape slows
• Volume dries up
• Large seller on tape
• Bids drop
• Stopped out
• Target hit

EXECUTIONS AND PRICE ACTION

@8am some volume starts to come in (was watching for an hour)

@8:05 entered on first candle to make a new high after pullback with volume, full size 1000 shares, full stop is any tick below 6.13

@8:06 took some profit, volume is pouring in, tape is speeding up

@8:08 took some profit

@8:13 took some profit at major resistance 6.80 area on daily

@8:22 liquidated remainder of position, need to leave for work

KEY TAKEAWAYS

• Great trade. Good job being patient and keeping it on watch this morning. I have been watching this for a few days. Good job keeping this chart up on the 6 screen from yesterday and not dismissing it.

• Sold a little too much too soon. Was feeling rusty as this was my first trade of the month. Work has been too busy get any trades in. I was nervous and took off too many shares on the initial move. Was eager to start the month in the green.

SYMBOL

PREP

VIX

SPY