$Roundhill Memory ETF(DRAM)$ is a good reminder that chasing a sharp selloff can be dangerous.
On October 14, the stock looked oversold relative to its Bollinger Bands, while the oscillator was curling up from oversold territory—a signal that had been constructive in recent sessions.
By Thursday morning, with $DRAM down 6.5% in premarket and facing a major gap below the lower Bollinger Band, the risk of shorting late was already elevated. The stock subsequently squeezed bears as the oversold conditions fueled a rebound.
The lesson: A sharp gap down doesn't guarantee further downside. When price is stretched, wait for confirmation and use key price levels to define risk rather than chasing momentum.
Stay disciplined, Tigers. 📊
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