Hope all is well, really loved trading this stock. Was thinking of holding overnight, but really thought to myself, this thing has tripped in two weeks from $2-$7, no reason to be greedy. Got executed at a crappy price, but I think it's better to say, I left money on the table, than say "I should have sold at so and so price". Not sure if I'll be back in this one, as I"m worried, even after a re-tracement in to the 4's, I'd be scared that it might want to test the 2's.
Be careful out there, specially if your position is from these high prices. Remember, when they pull the support out, she is going to dive heavy. With not much support, and consolidation, what goes up like this, nose dives harder.
I'd have to disagree with your "not much support" characterization. There is strong support in the low 4's area. The only way we breach that is with disappointing earnings(sometime in May?)
A normal stock would correct hard to the low 4's from its current spike, however 2 things influence FONR's abnormality:
1. The low institutional ownership indicates there may be strong institutional representation in the most recent volume spikes (read a longer term holder) 2. The massive increase in short positions I believe are mostly retail types, that know not what they short or short on pure technicals without appreciation for the fundamentals. These types are "fueling the advance".
Bottom line is FONR may base more "horizontally" than "drop", allowing Bollinger to eventually catch-up to the recent move.
It would be different if this comes under attack by hedge funds or sell side analysts exploiting the media; or quite frankly if we get coverage initiated at a level reflecting "excess".
This is why you book some and hold cash for the unforeseen artificial depression in price.