What a nice finish to a great trading week! I mentioned a few days ago that I had bought a position in $CRMD based again on the fantastic bull flagging, RSI ripping, high volume bullish trend. I sold it today just a week later for a nice 51% profit! Check out the chart above to see my buy and sell points.
What a beautiful bullish chart! Look at those 2 beautiful tight bullish flags in January and February!
The blue line is the 4ema and I use this as my trailing stop loss – this stock might gap up on monday morning but I took 90% off today because of how far the stock is above the 4 ema. You have to lock in profits when a stock does a 20% move! I am still holding 10% to see if it can break $5 per share but I will be keeping a very tight stop on this remaining small position that is for sure!
I do have high hopes for a continuation >$5 per share as the year progresses but I know from experience to take 50% profits when I have them! Hope is not a sustainable trading strategy as my mentor SuperTrades always says – follow the rules and take partial profit after a big move and then you can ride the rest stress free. I always sell too early so it will probably continue upwards next week but the risk/reward is starting to be sub optimal for me at this point.
Short Interest – I can see on social media that there is a hungry hoard of vocal shorts calling for $CRMD’s downfall but I suspect a fair few of those covered today into the squeeze. I still think CRMD is highly undervalued at this price.