UMC — gap-reversal

Summary

They are raising 1.8B for equipment and reinvest in the general business, which is good but they are doing it through a convertible bond, diluting shares in the future. 9.4% gap is great, however, this ticker tends to gap a lot, so you have to be cautious. The gap was near a recent low, which could act as a pivot point. What I did like was that it was on a recent strong uptrend, so if it gaps down, my logic is that it tends to continue the trend. At the end of premarket, it started to go up, so I was thinking of getting in on a second push after it pulled back on a strong open. Instead, it dropped right before open. I wouldn't say it capitulated, but it started to bounce, and I got in near the end of the bar. Sold the first half quickly, as I didn't love the setup, as mentioned before. Sold the rest on the low of the bar.