SKHY — gap-reversal

Summary

10% gap as the whole sector starts to sell off and companies start to look at China to manufacture. This one offered 2 trades, both of them variations of the same strategy. There was a lot of premarket volume too. That activity makes it a better candidate for a trade. 1: Breaks out of premarket consolidation, comes back a bit to consolidate, and breaks out again. That's the entry. Sell half as it does the initial push and the rest at the low of the previous bar as it loses momentum. I actually missed this one because I had another trade at the time, but that doesn't change the fact that it was a great opportunity. 2: This is the one that I got to trade. It lost momentum and started to form higher lows with the pullback. Once it broke the high, I got in. Sold half as it started to reach the high of day and the rest as it lost momentum.