I think I've found a decent pattern--as long as drug companies make announcements every day at 6:30am.
Checked my tracker around 7:30am. NNVC was #3 on the list for premarket change and #2 for volume traded. Checked the news, and they announced they had positive results on some coronavirus drug.
Watched the chart to find an entry. Made my entry at the 20 period MA. The price kept going up from that, and I was getting worried I wouldn't be able to purchase it. However, instead of rushing in to buy, I just kept changing to the 20 period MA for entry. The 5 minute chart was highly bullish, but the 1 minute chart showed what I hoped was a bearish retracement and not a bearish trend.
It came down to my 20 period MA, and my trade was executed. Of course, it went slightly lower as soon as I purchased it. I kept the faith that the news would continue to percolate as the morning continued and set my sell point at the premarket high at that time. My plan was to check on it again at 9:05 when the market really starts heating up and see what was going on. Because I had a decent entry point, I wasn't worried about losing too much money on it if I had to sell. I've noticed that drug stocks shoot up on the news and then consolidate around the 20 period MA with brief breakouts from that. They don't tend to fall below the 20 period MA until the market opens at 9:30.
Here's the chart: I put the pointing fingers where I bought and sold. The top chart is the 1 minute and the bottom is the 5 minute.
I would almost call this the perfect technical trade as far as momentum trades go. If I can find this everyday, I would be very lucky indeed. But, I know this won't happen very often, so I'll feel good about it for now.
Glad to be developing a pattern...just need it to work more than 50% of the time.
Final Stats:
Ticker: NNVC
Bought: $8.68/share
Sold: $9.40/share
Gain: 8.3%
Total of my $100: $167.84.
Daily Average Gain: 5.7%
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