Steer Technologies Inc (STEEF)

[foxi]

So, the problem with it closing near $3.10 is it traps investors looking for entry in a high risk situation - if the upcoming trend is upwards, price could explode upward tomorrow morning and rob latecomers of some juicy gains. BUT if trading's still trapped under resistance and the upcoming trend is downwards, it traps people who bought high in the red.

That situation is known as a bull trap. https://www.investopedia.com/terms/b/bulltrap.asp

To control risk you have to avoid taking on new risk until the new trend is decidedly confirmed. Previous longs who haven't sold are at lower risk because they are already well in the money. For future trades it's ideal to get in at the bottom and only sell part of your shares at take profit while waiting for a new trend to emerge, so you don't miss out on potential future gains in situations like this.

I've personally been flipping this one so I currently own no shares. So I have to gamble whether I think this will rise tomorrow or fall. :) And I have to weigh how much risk and reward are at stake and whether risk exceeds my tolerance level.