Monday’s steep decline and Tuesday’s sharp rally are a snapshot of ‘why investors should never overreact to short-term news.’ Traders on the other hand live for this kind of volatility. In volatility, opportunity is created.
In these volatile markets, scanning for securities at or near support is always a good place to find potential multi-baggers.
Eco Depot, Inc. (OTCMKTS:ECDP) is sitting right above a major 78.6% retracement/ support level at $1.06. The last time it came down to this price range the stock went from $1.16 to $3.20 for a 175% gain.
If support kicks in, shorts who have accounted for a large part of ECDP’s recent volume might decide to cover, and that could create another bull run. The ESG play could see similar momentum other ESG companies have benefited from after Monday’s dip. ESG ETF ESG, DSI, and PHO are all seeing bullish momentum as of Tuesday.
Century Casinos, Inc. (NASDAQ:CNTY) is sitting just above its 1 year 38.2% retracement level and looks like it may have turned the tide Tuesday. The Missouri-based Casino operator is in the process of moving its open water casino to a non-floating facility. CNTY operates 1,365 slot machines and 32 table games and generated 43% of the Company’s net operating revenue and 104% of the Company’s Adjusted EBITDA1 in Q1 2021. With Q2 numbers around the corner, this could be a catalyst.
NexTier Oilfield Solutions Inc. (NASDAQ:NEX) looks like it may have found support at its 50% retracement level and was up Tuesday 6 cents to $3.65. Still, almost $2 per share below its 52-week high of $5.55 the stock may have room to run. While still rated “overvalued” by a majority of funds, this could be a short-squeeze opportunity.
Reading International Inc. (NASDAQ:RDI) ran 225% from $2.31 to $7.52 earlier this year. The stock is right above its 38.2% retracement level of $5.52 which it has managed to stay ahead of despite a rough stretch over the past month. After a pretty steady decline, the stock was up Tuesday, and this might signal a turn in sentiment. Monitor trading over the next few sessions for confirmation.