What is up, everybody welcome to trace trades, where we have technical analysis on different stocks in the stock market, as well as potential buy, hold or sell opinions on these. Given stocks. I'd like to preface by saying that i am not a financial advisor nor expert. I understand i'm doing youtube so take what i say with a grain of salt.

The reason that i started this channel is because a couple years back, i was about 30 000 deep in some pretty bad medical debt, and i was very fortunate to have some close family friends and mentors that pushed me to work really hard to invest my money In the market and i'm happy to say that i am not only now financially free, but i'm doing pretty well for myself at the age of 23. So if i can pass along any of the information resources or tools to you, guys make the community a little bit better off than it was before, that's all i can ask for. Lastly, if you wouldn't mind drop a like on the video, it really does help support the channel and consider subscribing if you like, to see more content like this, as i do post videos every day now, quick, shout outs to the guys over at the patreon. We did have a couple more members join us today.

We've got andrew sarah david, armando s, ryan, omar karthik pedro valentino. Thank you guys so much for the support. It really does mean a lot to me. They will have access to the private discord as well as real-time insight to my personal trading.

If you'd like to join, there's a link in the description box down below now quick update on ticker symbol bng0, i did have a position in this in this stock. I had rebought in you know i sold out at uh, you know for for a pretty solid profit. You know 100 1400 bought in at uh. Let's see if i can find a 322 sold out for 590.

uh, the proceeds per share is 5.39 pretty solid day. Can't complain rebought in at uh at about 483, and we see a pretty harsh drop right here happening right, a pretty harsh sell-off on the stock and there's a huge reason why you're probably already aware, but if you're not, that is because biogen and bio nanogenomics has A share offering so bio nano genomics shares fall after plan to sell more stock. Let's just take a quick read on this bionic genomic incorporated plans to sell more shares after a sudden surge in stock price in recent weeks and shares dove and after hours trading thursday. Today, in response, the company revealed thursday afternoon that expects to sell more shares under a shelf prospectus filed in august, but did not spell out how many shares it plans to sell, nor at what price the genome analysis company's shares, traded for less than one dollar.

For much of 2020 - in fact, you know about 12 or 13 days ago, but began to move sharply higher around christmas. Gaining more than 800 in the past month shares closed thursday at five dollars. A retreat from highs topping seven dollars earlier in the week. That fell more than ten percent and after i was trading thursday today after the news of uh the share offering so i did close out of my position at bngo.

It is not showing right now in my account, but you can see my positions right. I do not have bngo anymore, i did have them in my previous video um. I did take a small loss on this, i'm down about 120 on that stock. I was planning on swinging this until monday, but these kind of things happen in the market guys right.

We don't live in a vacuum, we can't predict the future, we can speculate what will happen but uh. You know that that was a potential risk right with any penny stock, there's a risk of a share offering when they see a huge surge in price, like that and the ngo did do just that. So i'm personally cutting my losses. I i was planning on playing this as a swing trade and i i think the risk is pretty decently high on this right now.

So i'm out of the stock guys and if you're not familiar with what a share offering does um. Typically, it's it's great for the company long term right because they're generating revenue and uh it's it's a great way to sustain their operations out of bng all right, but for shareholders um. This typically follows up with a pretty harsh sell-off because they don't really like the idea of that right. Let's say that they uh they have a share offering at four dollars and thirty cents right.

Well, what's the point in uh, in the stock being five dollars, if they're gon na offer it four dollars and thirty cents right um, it doesn't make sense, so shareholders will typically get out of the stock uh they'll sell out for either a loss or a small Profit and they'll move on to something else, and personally, that is what i'm doing here. So you know there's a couple different ways that you can play this if you'd like to look into the ngo in the future as a play, you know we do have support here at 3 and 50 cents on the macroscopic the one month chart here. So do be watching for that we'll see if we break through 3.50, keep in mind that you know about two weeks ago we were trading at 55 cents, so it's very hard to say how much of a sell-off we're gon na see on this stock. I think it does help that the sell-off happened in the in the after hours.

This was during regular market hours. I think the tank would have been worse and uh honestly, i'm very grateful for the guys over the discord for bringing this to my attention because i was pumping out. I was pumping out some videos. I wasn't really paying attention to the uh to the market that closely.

I wasn't watching my stocks and uh or the news, and i probably would have been out a lot worse if i had not seen that. So. Thank you guys for doing that. That's what's awesome about trace trades, we all work together.

The community is freaking awesome. I appreciate everybody's help and i appreciate everything that we do together here in the community. So um. You know if you're looking to trade.

This, like i said, look for that 3.50 mark as a potential uh level of support to enter at. I do anticipate that in the future we're going to see the vama, the volume adjusted moving average dip below the ema, the exponential moving average, and this is a 200-day moving average. That just gives you an average valuation on the price action during that. Given time and the volume adjusted moving average is a 20-day period, moving average, which gives you an average on volume and volume action at 4.73.

I anticipate we're gon na see this cross under the ema right um, and that is an indicator of very bearish territory. So just be watching out for that. You know once we see it come back up uh over, like we did previously back before this stock shot off, we saw you know to do, go back a little ways. We saw a touch right here.

That's a that's! A bullish indicator when the va ma is above the ema right. If you see that uh, if you see that happen again, that may be an indicator to get back into the stock. So personally, i would not long this. I think the momentum is going to trend bearish.

Now, of course, you know news catalyst and upcoming public relations could change that, but uh personally, i think the risk is a lot higher now there's a share offering on the table. So i wanted to bring that to your attention that way, you understand the potential risks withholding your position in this stock and personally, that is why i sold for loss as small as it may have been. It could have been a lot worse right, it's better to cut your losses and accept the l, because they come right. That's part of investing, that's part of the journey.

You can't win on every single investment. If we could, nobody would work. We'd all be we'd all be investors and traders, but it's all about cutting the losses to as small as you can now. An opportunity for the stock that i do think is potential is to short this this stock and i typically don't short stocks.

I'm going to be honest, i don't like the idea of infinite loss, but if you do short stocks, you know that is an option here. I think uh. If, if you look at, we see a bounce off of 559 at any point in time after trading hours or or in the pre-market, the regular market. The next day, if you see a bounce off 559, i'm very speculative to say that we're going to cross over that.

So if you see a bounce off that that'd be a great point in which to sell, shares and then maybe rebuy in you know at this level of support or maybe three dollars and fifty cents. I think the downside is going to be pretty pretty high. I think we'll see a pretty large price correction after that share offering. So there is potential with uh with a short on this stock.

You could also take a shot at a a put option. Um, i personally don't play around with options a whole lot unless i'm in a stock long term and i'm just trying to make a quick buck, but you could say okay, i don't really think this stock is gon na go much higher than this stock price right. Um so maybe like i don't know five dollars and fifty cents six dollars whatever you got available on your brokerage account um, you can say i don't think it's gon na go much higher than this and you can play an option play in that way and then The lower drops the more money you're typically going to make so um. That is an option as well, if you'd like to make money on the stock in that way, like i said, i typically just go along on stocks, and if i, if i ever play options, you know i'm typically making calls or uh that sort of thing.

So um, i'm not really going to say you know i'm going to do that personally, i'm just going to admit my uh and accept my loss here and move on to something else. With my money, you can watch for a video in the future on what i plan on doing with the funds. But i do have some extra dry powder now that i will likely put into either another uh day or swing trading opportunity or into a mid to long term play in the future. So i just want to give you guys a quick update on the chair offering just so you are aware of what is expected to happen with the price valuation and the price action on the stock in the future.

Because of that i would expect you know. Maybe a spike in red volume, the rsi indicator, as you can see, is approaching 30.. We are going to be pretty oversold um. You know in the future, there's probably be opportunity here, right, um, there's, there's more that this stock can do, but just in the short term, it's very risky.

I i don't want anything to do with that. I don't like i don't like seeing share offering that's uh. That's a pretty huge indicator that we're gon na have a pretty bearish uh trend, pretty bearish reversal, so that is the update on bngo guys uh. Please, please don't leave me a bunch of hate comments in the section.

I know you guys really like the ngo. I love bio nano, but everything does come to an end and this has been a beautiful run up. I know a lot of people made a crap ton of money on this. I know i was up 150.

Some people were telling me that they made you know. Five, ten fifteen twenty thousand dollars on bio nano, and that is the most rewarding thing in the world. So i'm just honestly glad that you guys were able to make a profit off of this stock and that we were all able to work together and turn out. Pretty well at the end of the day, so thank you for watching the video.

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So thank you for watching the video i appreciate it. I will see you all next time, my friends and uh good trading and good luck. Peace.