Two biopharmaceutical stocks and a chemical one were the stocks I bought before the closing bell yesterday. ARRY, GURE and GTXI may not be my best stock picks from a technical perspective, but I liked the reward/risk ratio of those trades. In addition I don’t usually trade stocks that are dangerously approaching the penny stock status, yet I couldn’t resist buying GURE stock on confirmation of the support level at $1.30!
That is almost the same reason for buying GTXI stock as well. The bullish candlestick pattern found in both daily stock charts seems to be confirming the previous-resistance-now-support level.
I consider ARRY stock the most risky pick of the three. Although Monday’s bullish candlestick seems stronger, the double top where I have set my profit target could be regarded as a trend reversal signal. That is why I will trade out as soon as a new daily low is printed in the daily chart, in order to avoid getting trapped into a consolidation or worse in a downtrend.