Gap trade alert: SKYQ

Hi guys and gals — Jason Bond.

Despite condition improving with oil prices I like this little company Sky Quarry SKYQ.

My rationale is the pending good news coming in July to keep a bid under the name.

Range is over a $1 to resistance.

Dilution risk is medium as they have 25 months of cash left based on the current burn.

I imagine short interest grew Monday and significantly so I’m thinking a squeeze into the weekend.

Here’s the trade plan.

Buy zone is $2.40-$2.70.

Stop loss is on an open lower than the close Wednesday.

It’s closing strong here so a retracement to $2.50 looks like a good entry point.

Short interest is currently listed at just shy if 9% but I’m certain a lot of big players got trapped Monday with the chart taking out Monday’s high.

I think a good sell zone would in the low to middle $3’s overnight.

I like this into the close and suspect it’ll be over $3 before the weekend.

Technically it’s a pure breakout and doesn’t seem to care about oil coming down. I presume that’s due to the July catalyst.

More on this name in the morning and hope to see you in the chat room.

Eat, sleep, and trade.

Jason Bond

Disclosure: I’m not an investment advisor.