Fibonacci retracements Using $3 as the baseline. The stock retraced below the 61.8 area in one day is a very violent pullback. 76.4 retreatments just above $4.00. The has a strong possibility of settling and consolidating in this area if it does not bounce back. I would not be surprised if it gaps up.
What happens to the stock will all depend on the sector trend. This is not stock specific run this stock will trade with the entire sector. So track major stocks and ETFs in the sector. I find that $3.00 is a safe area and $2.00 is loaded up the truck area. Not that it may go that low, but one should know where the real support for the stock is and a great bargain. At $2.00 this stock will have rock-solid support and would most likely not go there. This would require a market crash. Remember anything can happen in the stock market and be prepared to act when there is a short window of opportunity.