To The Moon

C3.ai (AI) has make a comeback with a nice rebound, Bigbear.ai has done the same on 08 Feb trading session.

I would like to share how I would use the signal, support and resistance provided by my model to trade BBAI.

Do note that there is a factor of wide market volatility which we experienced on 07 Feb. But let us examine how we can observe the price action, volume, and MAVOL to trade.

03 Feb – BBAI Price, Volume, MAVOL

As we know BBAI close at +44.17% for 03 Feb trading session, I have used 5 mins chart to try to explain.

How to detect Uptrend

Observe the prices stay above the VWAP in the GREEN box starting from 10:35hrs, and BUY volume is greater than SELL volume, notice that MAVOL5 is above MAVOL10, MAVOL10 is above MAVOL20.

You will see a nice uptrend, when there is continuous 3 good BUY volume bar. It start to move sideway when SELL volume comes. This is how I detect whether there is an uptrend.

How to detect Downtrend

Price still stays above VWAP, but now MAVOL10 is above MAVOL5, there might be a mix of BUY and SELL volume, but take note price will fall below VWAP once MAVOL20 is above MAVOL10.

Let’s prove whether we can apply the same for trade on 08 Feb where BBAI close at +10.57%.

08 Feb – BBAI Price, Volume, MAVOL

How to detect Uptrend

Observe the prices stay above the VWAP in the GREEN box starting from 09:35hrs, and BUY volume is greater than SELL volume, notice that MAVOL5 is above MAVOL10, MAVOL10 is above MAVOL20.

You will see a nice uptrend, when there is continuous 3 good BUY volume bar. It starts to move sideways when SELL volume comes at around 10:05.

When price went below VWAP

When we noticed that MAVOL10 is above MAVOL5, price start to trade below VWAP, this trend continue for the rest of the session.

So how would I trade for BBAI on 09 Feb

Considering that this stock is still volatile, as its rise is due to the A.I. hype, we do not want to be caught when the hype suddenly ended.

This is how I would predict the open price for BBAI to be at, as my model has predicted it to be a BUY signal (the model periodic run at 5pm SGT time).

At the time of this article, BBAI is trading at $5.61 in pre-market.

$BBAI 08 Feb Close Price: $5.44 I hope it will open higher at $5.70 with a large BUY volume when market open at 9.30am, this would make it trade above VWAP.

With that, MAVOL5 should be above MAVOL10 for the session from 0930hrs to 1000hrs. It should trade above the resistance after 09:45hrs.

Summary

This is my way of analysing the stock with help from my model, and how we can see the price action, volume and with the help of MAVOL.

Everyone has their own way of analysing as well as their own trading plan. Do your own due diligence. We can share ideas. You may see somethings that I do not see.

There are other factors that might affect the analysis, like volatility of overall market, index performance, market sentiment.

Do like and leave a comment if you like what I shared.

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.).