Today I'm adding RVLT to my model book and have already drawn up the tentative plan of action on how to trade this. RVLT shot up nearly 51% today on an earnings related catalyst, trading nearly 10 million shares --approximately 30% of it's float. After such a large sized move I have no doubt that price may very well continue north without me but from a risk/reward situation I can't justify entering this yet so will wait patiently for price to either flag or pullback and hug the 10 period moving average.
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| RVLT Model Book |
Stepping up in time frame, RVLT has exhibited strong volume bars, nearly turning over its float for 4 consecutive months. Widening out the horizon it is clear that this volume is the highest in it's trading history. Around the time this spike occurred there was news release relating to a new product --an energy efficient LED light.
(source) So there is a new product launch and earnings catalyst at play here along with massive volume with increasing prices suggesting accumulation. If there is any substance to this, price confirmation and increasing momentum will be the clues I will pay attention to in the near term and make a decision as to whether or not this will just become a swing candidate or one I will look to trade on a longer term basis.
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| RVLT Monthly |
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