Dermata Therapeutics, Inc. (NASDAQ: DRMA) was my top watch on Friday. I was watching it for a break above $3.25 with a goal into the high $3s.
It's a low-float stock and the company just announced earnings showing it has $8 million in cash.
So it's not a money-losing biotech that likely won't be out of business tomorrow (but it probably will be eventually).
I sent out my alert to subscribers at around 9 a.m. Eastern…
But then in my morning SteadyTrade Team webinar when the stock hit my signal, I noticed something odd.
The stock had the weirdest price action I've seen in a low-float stock in a looong time.
When the stock hit my signal at the high of the day in premarket, it didn't do what I expected…
Usually, a low float stock — especially a micro float stock with fewer than 1 million shares — will start ripping higher when it breaks the high of the day.
Especially in premarket like we've seen in so many other stocks recently.
But instead of ripping higher immediately, DRMA went up only 3 cents per share.
I didn't want to spook anyone or be the boogeyman, but it was definitely odd.
So I had to mention it to the members…
It was unusual price action. And price action is king.
It doesn't matter what high odds, repeatable setup you're looking to trade…
You have to consider how the stock is moving.
When a low float stock is moving like a 500 million float stock, you have to take note.
Ask yourself if this is the kind of move you expected…
Maybe you need to adjust your plan.
My plan did end up working with my goal into the high $3s — DRMA hit a high of $3.68.
Luckily a lot of traders in the SteadyTrade Team heeded my warning…
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