STX — gap-reversal

Summary

One of its competitors increased the supply and quality of the product, and people took it as a bad sign for this company. Huge 13% gap on the lower end of the range, great earnings uptrend, strong sector and volume. Even the volume in premarket was pretty significant. It capitulates at the open, and I get in on the bounce. The stop was not at the previous bar low because I felt it was too tight and wanted to give it a bit more breathing room. Sold half as it was reaching premarket resistance, and the rest once it broke the latest bar's low.