Solar Winds, Com. (Ticker: SWI) gapped down last week and have fallen below the 20-day moving average. Normally we would not buy a stock that has broken down below its SMA, but in this case the gap makes this a very attractive candidate.
Take a look at the chart and you will see several bullish signs: (1) the stock has pivoted off of the role reversal support level; (2) we have a green candle today; (3) after the stock gapped down, the volume continued to decrease, telling us the selling momentum is slowing.
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