DMC Fibo bounce play

DMC was doing really well in the past several days rallying 36% from when it first breakout in Oct 1.
Due to the parabolic run, early buyers had a selling spree to realize their profit which brought the stock to its current level.
The interesting part is it just touched the 38.2 retracement level and in case it holds, a bounce is imminent.
That doesnt mean you should just enter blindly. A responsible trader should still prepare for a cut loss in case 7.85/sh breaks down.