To The Moon

The A.I model has predicted 2 good therapeutics stocks for Week 12. More details on the focus of stocks for Week12, you may refer to this article.

Week 12 - Crypto, Pharmaceuticals, Therapeutics stocks to watch!

We have a good 71% gain swing trade on ZYVERSA THERAPEUTICS (ZVSA) Best 71% Gain! Swing Trade - ZYVERSA THERAPEUTICS (ZVSA) - on 23 Mar 2023, and we have another 11.3% gain on $Dermata Therapeutics Inc(DRMA)$ before it turns South.

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A.I. model predict Dermata Therapeutics Inc

The A.I. model have predicted a BUY signal for Dermata Therapeutics Inc for 24 Mar 23, with a resistance value at $1.915.

This stock have a good run during pre-market, and it might make entry price very difficult, so I decide to use my trading plan, to monitor from 8pm(which is 1.5 hour to actual market open).

Entry Price at Pre-Market (1.5 hour before Market Open)

I decide to enter above the resistance value, but below the VWAP price in pre-market.

The reason is if you noticed there is a huge SELL volume, which mean that these are people who has gotten the stocks below the $1.83 price before 24 March 2023.

Remember I shared before on a book I read, always look at previous day trading (e.g. price, volume and also transaction volume (BUY, SELL volume).

Exit When Market Open with around 20 Cents gain in mind

We always hear that we need to have a risk strategy, for me, my trading plan always include an exit strategy for profit.

In this trade, I decided to have around 20 cents gain in mind, hence, I manage to exit just 1 mins after market open.

Dermata Therapeutics Inc did go higher later around 9.30pm, but do remember our trading plan, and do not chase for high gain, because after that it start to go south.

Let us look at how the BULL power and Bear power stack up during these time.

Trading View Bull and Bear Power

If you look at the price before 20:00, there is a downward trend, but BULL power is still there, and did not turn to BEAR power.

Which mean this stock would have a chance of gap up when close to market open.

This is what I personally observed, the stocks which has significant good volume during pre-market, would attract investors from 20:00 onwards (either Sellers or Buyers).

Remember the earlier chart from Tiger, there were a very high SELL volume at 20:00, but yet BULL power is still pretty high.

This is where I decide to enter when there are selling happen.

By the time, I decide to exit with around 20 cents gain, it is at that time when BULL power has just came back.

Summary (what I have learnt from this trade)

Do not chase any high percentage gain stocks in Pre-market, if you really want to buy and make a profit.

You need to do this:

• Try to find an entry price by observing the price and volume movement from 8pm onwards to market open

• Try to look at the BUY volume previous day and the day before (e.g. 2 days)

• What price did the BUY volume happen? There might be significant percentage of investors who would want to take profit when price is good on the trading day

• If you missed the entry price during pre-market, then continue to observe for another period (9.30-9.45) and 10.30-10.45.

Do let me know your thoughts on this in the comments, this is my personal observation, and so far, it has been working.

Do like, share and comment on this article if you find this trading thought useful.

@TigerStars appreciate if you could feature this article so that fellow tiger would benefit from my trading thoughts.

Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Technical Analysis, and there are many other indicators that need to be look at together. (e.g., Price Action, Volume, etc.).