Ubiquiti Networks Inc. (UBNT) recently gapped down challenging the big run up it had from $25.00 to $56.00.
GAP REVIEW
On May 9, 2014, UBNT gapped down on a historically volume high day of over 10 million shares and its normal daily average is 1.8 million. Large gap down volume days are footprints of the larger institutions leaving the stock. Additionally, this gap down day violated the 200 moving average which was bearish. The stock has traded seven days since its gap down and has not been able to get over the gap down day high of $36.50.
KEY LEVEL
Supply exists into $36.50 from the gap day high and has key demand at $25.00.
THE TRADE
Short a break under $32.50, stop over $36.50 and target into $25.00 or any rally into $36.00. You can watch for price rejection for a follow through short entry.