RMS broke out on a Covid 19 update to its surgical mask nano coating on Fri 23 Oct : rallying from around 0.8.p to break 6p on Nov 3: it currently tops the league in the Gaps Up History Page.

Parabolic moves like this can blow-off their tops and pullback rapidly, so it was with RMS : from a 6p touch to a 2.05 check of its 21 EMA: it gapped down today on news of  more inside selling with one of its NEDs converting a loan in into shares and exercised options to sell some of these:  no doubt spooking sentiment as well as adding to the order flow over the past few days.  This follows multiple directors reducing holdings over the past few days to book profits (click the link in the Gaps Up Historical to view all RNS' over the recent past

These types of tiny cap , sentiment-driven story stocks can be nightmarish to trade: it does set-up a high risk/high reward trade for those with the risk appetite but is best kept to low stakes and a bit of vigilance on execution

A good metric on prevailing sentiment is price action around the 21 EMA: if this level holds and is bought then price tends to rally: if it is sold and RMS closes below its 21EMA on more than 2 occasions, that is typically a sell signal.

Very strong mo-mo stories only ever check theri 8 EMAs and then bounce so huge caution with this.  Any entry would want volume confirmation of a move off the 21EMA with a stop below the 21 EMA or after two closes below the 21 EMA. Its pretty liquid with a tight spread so does lend itself to a scale-in nibbling approach

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