BBAI - a penny stock in a hot sector LONG

3월 10일

BBAI fell on an earnings miss on Thursday March 7th. The downtrend of 30% was basically a

slow flush. Penny stocks are volatile to begin with; this one is in the hottest of subsectors.

Price is in the hard oversold area just above the second lower VWAP line on this 15 minute

while the RSI lines are in the mid-30s showing the price weakness. A predictive forecasting

algo from Luxalgo suggests a bounce from the present price. I will take a long trade targeting

a return of 25% over the next week with three targets and partial closures of 25% , 50 and

25% respectively with the targets shown on the chart. The stop loss is 2.50 just below the

pivot low of 2.5. This trade idea demonstrates how penny stocks have great volatility and

how if entered well can result in 25% weekly which if compounded regularly can result

in rapid account balance growth overall. The trade is to be managed with partial closures

directed by alerts and notifications as well as a trailing stop loss of 5% once the price gain

has reached 10-15%. This minmizes effort and screen time so that they can be spread

across a wider variety of trades.