Day Trading with the Loon – AEZS
In this post we are going to study how we traded AEZS for a quick profit and how we identified the play
What is AEZS (Aeterna Zentaris)?
It’s a small Biotech company that recently got approved by the FDA to delevop a drug that targets the growth hormone. Did we knew about this company before? NO!
How AEZS appeared on our radar?
We use a Yahoo Finance to search for stocks that are being traded and have big gains during the day, you can find this info on the Gainers section. We saw AEZS had a 100%+ on the day with high volume.
How was the trade executed?
The daily trading average for AEZS is around 35,000 shares and by the time it caught our attention it had over 1,000,000 shares traded, this is when we decided to check the daily chart for AEZS and we confirmed that indeed was an abnormal volume
The intraday chart showed a constant rising of the share price supported by volume, a lot of buyers and not that many seller which is why the share price went so high so quick.
We executed our buy order at 12:50pm after 3 red candle sticks with increasing volume were met by a big green stick with low volume, this was a signal that the majority of the sellers executed their trades and once again there was a shortage of shares.
We kept following the trade until 1:30pm when 2 big red candle sticks with very high volume appeared, this was our signal that our deal was done, we need to get out quick from it and turn the deal into profit.
Even though we tried to sell our shares at the peak, we couldn’t executed the deal at the very top, this was made us miss around 7% on profit, but we are to walk away the deal with a 11% profit in 1 hour!.
Briefly after we finished the trade the price went up again, this can happen very often but we cannot be sad or angry about as long as we have a profit!
The reason why we finished the trade after 1 hour is because at this point there was A LOT of traders wanting to materialize their gains, and you can see this happening at the end of the day when the share price rapidly declines with high volume
If you want to discuss this trade please leave us a comment!