IFRX Trade on Apr 5, 2023 12:32 from BanalityOfEvil: Tradervue User Stock Trades.

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Post-Consolidation Order-Book Scalp

Catalyst
IFRX is trading heavy volume after positive drug news released yesterday has driven price higher. Price has consolidated nicely around VWAP midday and 5.70 is being tested.

Trade Idea
Price could touch $6 in the the next couple of minutes if large seller at $5.70 lifts

Setup Quality
B

• midday ultra short term scalp off the order book
• large seller at $5.70 spotted, 50,000(+) shares spotted on the offer and holding
• late in the afternoon price has consolidated for a couple hours and is now getting volume expansion after a clean break and test of VWAP @5.52
• Flavor of the day stock, xtreme RVOL over 1,000x, plenty of liquidity
• low float; price could hit short term target quickly if large offer lifts

Plan

• Get long after price holds vwap with volume expansion with the goal of breaking through 5.70 (4th test of 5.70 in past 45 mins).
• Sell 90% at target 5.94 (high of opening range resistance). Bots will be thick and price could come back quickly, so take profit quickly, especially since it is midday and volume is lower. Leave 10% as a runner.
• Stop is break vwap/entry candle at 5.52

Reasons to Sell

• 5.70 50k share offer will not capitulate
• stopped out
• target of 5.94 hit

Executions and Price Action
trade worked perfectly. volume expanded after test of vwap. large offer at 5.70 struggled to lift for only a moment. profit target hit.

Key Takeaways

• nice little scalp, good tape reading
• Price did end up continuing into the 6.90's, consider not taking profit so quickly on remaining 10%
• It could be argued that this was consolidating over $5 for almost 2 hours, which gave it the potential for a larger breakout. I did not have confidence to hold longer given market weakness today, along with the fact that price was still well off HOD, and Covid related stocks have not shown much follow through for many months.

Multiple Timeframes

Market Breadth - weakness