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PLAY
ICU – premarket breaking news scalp – possible trade to hold

CATALYST
08:19:32AM
ICU
SEASTAR MEDICAL RECEIVES FDA APPROVAL TO BEGIN STUDY WITH SELECTIVE CYTOPHERETIC DEVICE TO REDUCE HYPERINFLAMMATION IN ADULTS WITH ACUTE KIDNEY INJURY

TRADE IDEA
ICU may touch 6.40 or higher in premarket and could trend intraday. 6.40 is a clear target but other targets are not extremely well defined. There is some resistance at 7.23 and 7.89. The market is weak and this may not follow through.

SETUP QUALITY AND VARIABLES
“B”

• Fresh strong news headline but market is weak
• Low float
• confirming strength with volume expansion
• 1st target is clear

PLAN
Get long at 1st pullback to vwap, not using large size due to weak market and weakness of gappers. Sell 2/3 of position at 1st target. Hold the remainder until reason to sell. Secondary targets at 7.23, 7.89.

REASONS TO SELL
Target(s) hit
Stopped out
Large seller wont lift

EXECUTIONS AND PRICE ACTION
Got in early on 1st pullback to vwap. Achieved daily goal to get better price on my entry. Volume expanded, price moved to 1st target, took 2/3 profit as planned. Held remainder until stopped out.

Nasty V top pattern formation at 7. I did not pick this out as any kind of level so I held. Pullback to vwap/1st target did not holdup.

Stopped out

KEY TAKEAWAYS
Market extremely weak, not surprised this did not follow through. Price action/topping-v indicates that no real large buyers were stepping up and most of the weak hands were just fading out. No large sellers spotted on the tape.

Nice entry

Consider taking profit more quickly on these weak days

Proper exit was break and hold below vwap @ 8:45 am