A Cats and Dogs Trade Idea-CSUN (Long)

CSUN has lost a lot of ground, over the last several months, it's starting to show some signs that it may be ready for a relief move. The volume isn't bad in this one, but the price under $5 makes it speculative.

After a pretty straight line downtrend, it's moved into a consolidation pattern on a 3C 30 min positive divergence.

I'd look for a possible break below $1.82 as a potential false break before the move starts. Or a breakout above $2.00. As it stands, it can be bought here as long as you use proper risk management. On these speculative trades, I prefer to keep my exposure down to about 1% of portfolio (not including margin).

The nice thing about these C&D trades is they can move to double digit % gains in a day or two. Some even hit tripe digit gains within a week.