re: $INHX chart ( Technical Analysis & How I would trade it from here )

re: $INHX chart ( Technical Analysis & How I would trade it from here )

Below is a chart & notes on INHX

I don’t usually like trades like this long because of the fact that they are so news driven.

They make for much better shorts if you can get availabe shorts.

1) volume before gap was very low

2) on these news plays once volume dries up again you get a big retrace back to key levels as i mention on the chart

3) never know how long that will take for volume to dry up again but once it does
it should retrace back to minimum $12/$11 & potentially under $10 again

4) I checked Fundamentals & they do have cash on hand but they continue to lose money which is not a good sign

5) last Q sales were a better but the cash burn would be biggest concern for me

6) i don’t personally like to trade these type of stocks since so news driven but if i was long I’d take
profits & consider shorting it from these current levels
with a cover over $16.50/$17 max & if you do stop out then wait for next setup

double click on chart if you can’t read all the notes sometimes they tend to cutoff ( it will open up larger on another page)

Hope you find the notes helpful

Posted in Charting & Analysis, Charts