Here we have a great example of a former resistance level turning into support. The $20.48 level was a clear resistance level that $REN broke through on 9/2. This level was retested on 9/27. With the 21ema right around this area, it increases the chances of a potential bounce. Additionally, on 9/27, $REN dipped below $20.48 but closed above it.
A position could have been taken either EOD on 9/27 at 20.96 if you wanted to be aggressive OR you could have waited until 9/28 and taken a position when $REN moved above the 9/27 HOD at 22.20 and set a stop at the low of 20.47.
With high momentum names like this, its important to never take your eye off the ball. Be patient, don't chase, and let them come to you. Keep them on a ready list while they start to consolidate and simply wait for the opportune moment...generally speaking, that is a test of a logical support zone like what we saw here.
A position could have been taken either EOD on 9/27 at 20.96 if you wanted to be aggressive OR you could have waited until 9/28 and taken a position when $REN moved above the 9/27 HOD at 22.20 and set a stop at the low of 20.47.
With high momentum names like this, its important to never take your eye off the ball. Be patient, don't chase, and let them come to you. Keep them on a ready list while they start to consolidate and simply wait for the opportune moment...generally speaking, that is a test of a logical support zone like what we saw here.