MRAM Earnings Gap

Nov 15, 2021 02:03 AM 0 Answers
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Hi Marty! Wondering your thoughts on MRAM. I have scanner that runs in background that picks out names that are in uptrend as having 20ema above 50 ema and gapping up on volume that is well above the 20day avg of volume. MRAM reported Thur AMC and then had a BIG move Friday  gapping out of a cup and handle and popping up on my scan.  Traded 93M shares vs 4.8M 20 day average and closed up near the top of its range. Wondering how you would approach this  name or avoid since it's had such a big move up and could be considered extended as well as small cap. Left to my own devices I would put a buy stop at 11.20 with a small (1.5%)  position and a stop level in the lower 1/3 of the breakout candle. If that didn't fill i'd watch and see if set up in a consolidation or flag. Thinking that so much volume  it could gap and run.

MRAM (Everspin Technologies) is a $200 million market cap company. It broke out of a nine month consolidation period last week after "better than expected" earnings surprise. Needham upgraded the stock with a $12 price target this weekend. It is likely to trade higher on Monday.

If you want to take a swing at this use the 5% stop-loss rule. I do not traffic in micro-cap stocks. They have little fund sponsorship and only 19 million shares outstanding. This his stock can be pushed around easily in both directions.

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