After MGT broke out of the range of $2.75 to $3.10, the volumes have remained robust. The strength is amazing and recently there have been days with volume in excess of one million shares (April 11). The 10 day average is around 5 times the 3 month average of 69K. It also briefly crossed the 200 DMA of $3.91 but was not able to do so decisively. There is news that settlement talks are going on in its patent lawsuit against gaming companies. The lawsuit which is potentially worth $4.5 billion, is expected to change the future of the company. The Markman hearing is scheduled in October, and if the company is being approached for settlement, it implies that there could be merit in the case. MGT has not confirmed this so far but the way the volumes have increased, it seems that there could be some truth in the rumor. In any case, the first level to cross would be the 200 DMA of $3.91. For that it will be good if it spends time around the current levels and builds a base. Any dip to the $3.15 levels could be an opportunity to buy the stock. Till the markman hearing is done, the stock is expected to remain reasonably strong. Though the 52 week high ($7.46) is far away, the stock can attempt to scale intermediate resistances till October. The market is perhaps anticipating that soon the gap between current valuations and the potential will be bridged. If the trials progress well, or if there is a good settlement before that, then MGT can go into a medium to long term uptrend. Only a few months are left before the trial so it makes sense to buy the dips, of course stop losses have to be kept in mind.
Stop losses can be a disaster, as they become a market order very quickly and depending on how soon you are taken out, one can get filled much lower than planned. Take DNDN when short funds manipulated it down from mid 24's to 7's in 90 seconds before SEC halted in the 11's.
Just because you have a 10% stop, doesn't mean you won't get filled 30% lower.