CARA was a dream trade, bought purely off of the chart, expecting it would take off soon after the purchase, but sometimes swing trades last longer than planned.

Why was I confident in it? The previous day it touched MA50 and bounced, although closing red for the day. Noticed several bullish divergences on indicators I use, plus stochastics was pointing up, and that was it.

Patience paid off, bought for $9.18 and sold 2 months later for $16.99, around 80% profit. Not every investment returns this much in 2 months.

 What's next for CARA? I don't know, Stocktwits is full of hype, expecting important FDA decision that will propel it to stratosphere. I am not really buying that, will again keep an eye on it and if I see technicals look good, I may buy again. But it needs to pull back a bit more, maybe down to $13-$14 area before I consider another entry.

 

Where is CARA now: