What a big day for BNAI, with the stock surging 108%. Looking at the daily chart, I drew a resistance line at the $2.50 level, and it’s interesting to see how often this stock held $2.50 as support in the past. Earlier this month, we broke below that level, which now makes it a potential area of resistance.
Even though BNAI rallied as high as $2.91 today, it closed right at $2.51, just above resistance. When I look at it, I’m not convinced we’ve fully cleared this key level yet. The close tells me the rally encountered selling pressure right at that resistance line, and that’s something I want to see resolved before committing.
One notable aspect of today’s action is the massive volume bar, which topped 149 million shares. That’s significant because it shows there was a huge amount of activity, but it also highlights that sellers stepped in around the $2.50 level.
My plan for trading this stock is simple: I want to see $2.50 cleared decisively, which in my mind means the stock needs to rally at least toward $3.00. Once that happens, I’ll look for a pullback to the $2.50 area, which should now act as support. Until I see that confirmation, I’ll remain on the sidelines.
Patience is key here. BNAI’s volatility makes it tempting to jump in early, but waiting for the level to flip from resistance to support gives me a higher probability trade and keeps me in control.
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