Hey traders, it’s Bryce here.
Already this week, on Monday, we watched a penny stock spike 240%*!
It’s a low float stock that just entered into a merger agreement with Delta Corp. Holdings Ltd., a fast-growing logistics company.
Due to the stock’s low float … We’ll likely see more volatility this week.
Stocks with a low float have a low supply of shares. And the low supply helps prices spike higher when demand increases.
Anything below 10 million shares is considered a low supply. Yesterday’s runner has a float of only 1.6 million shares!
The chart below of the run shows a lot of trading halts due to the intense volatility on Monday. Every candle represents one trading minute:
This is FAR from the last trade opportunity this week …
Due to this stock’s immensely low float, I’m watching for a follow-up spike today.
Don’t miss the next move from our low-priced sector!
The Low-Priced Merger Stock:
On Monday morning, we got a trade alert for Kaival Brands Innovations Group Inc. (NASDAQ: KAVL) after the company announced merger news with Delta Corp.
Anyone who paid attention on Monday morning had the opportunity to snag some shares of this volatile spiker.
Take a look at the notification below, every candle represents one trading minute:
Get the next Breaking News trade alert!
A lot of traders in our community took advantage of Monday’s alert.
Take a look at some examples below:
Plus, I anticipate more trade opportunities from KAVL this week!
We already spoke about the low share count in the float … That’s one of the main contributors to this bullish price action, besides the merger announcement. It’s a strong sign that the price could spike higher.
And thanks to the nature of these volatile runners, we can use the same patterns to trade over and over again.
This is the framework that cheap and volatile stocks like to follow.
These patterns are always the same because people are predictable during times of high stress. Like when they have cash in a stock that’s spiking 240%* …
We’re trading human psychology!
You can wait for the next setup on KAVL, or you can get the next Breaking News alert.
Either way, make sure you’re using textbook patterns that these stocks like to follow! There’s a lot of upside here … It would be a shame to trade the wrong price action.
Cheers,
Bryce Tuohey
*Past performance does not indicate future results