MRNA — gap-reversal

Summary

It gapped 8.3% after Citi downgraded them to sell. It has a lot going in its favor: uptrend, recent good news with a Phase 2 vaccine, uptrending earnings, and it's in a strong sector (health tech). So even though it wasn't a huge gap, with all of those points in its favor, I wanted to see how it behaved after open. It made a nice small resistance level in premarket. I didn't want to trade it immediately, so I waited for the second bar. I waited almost until the end because it was indecisive around the same level, pulling back and breaking out from it. In the last minute of the bar, I got in on the breakout with a stop a bit below the low that shouldn't be touched if the trade was going to work. I got out in 2 parts as the price was going vertical without any pullbacks.