MRVL — gap-reversal

Summary

Strong sector with good steady earnings previous night. It opened with a 6.6% gap, but the premarket low got as low as 9%!, definitely an outlier move. I wasn't sure what the plan was to trade it, but it capitulated all the way down to the -9% again, and I used that level plus the low of a similar gap a couple of days before as a stop level. As it pushed too much in a similar fashion it capitulated, same shape of the other gap that I used as support, and fearing the same behavior I sold half, and trailed the other half as it lost momentum.