IMGN gapped up 13.3% on news of positive results on a late stage study for a new breast cancer drug. Whenever a stock gaps up more than 5% and sells off for the first few bars of the day, it is a candidate for a short on a weak rally attempt. When the first rally stalls and trades below the low of a previous bar, as IMGN did here trading below the 7:15am PST bar low of $15.16, the short trade is triggered. IMGN traded down to a low $13.75 for a maximum reward/risk of $1.40/$0.13.Click to enlarge
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.