Warrior Trading Blog

5 Stocks in 5 Minutes | Arsh’s Trade Analysis

Arsh_8.16

How’s it going warriors? It’s Arsh and welcome back to another episode of 5 Stocks in 5 Minutes, a video series where I share my top-five watch list stocks of the week. In today’s episode, we’ll take a look at some of the trading alerts I shared this week on stocks including Tesla, Nvidia, LK, and XLU. Stay tuned until the end of the video for my trade alert on CRWD. If you want to learn how I identify these trading opportunities, make sure to sign up for the Warrior Pro Course using coupon code Arsh30 if you’re not a member already. Make sure to leave your comments and questions below, and I’ll be back to reply later. Let’s jump into today’s video.

Let’s start by going over a short trading alert I shared this week on the stock Tesla. I mentioned to traders in the large-cap chat room to consider a Tesla for a short below the bearish consolidation pattern on its 60-minute chart. The short trigger was formed using the three-point trendline that landed at 228, and we can see that bearish consolidation and trendline in the screenshot here. The idea was to go short on a break of this trendline with a stop loss of the previous pivot high of 229 and a profit target at the next major support level of 222.

Taking a look back at its chart, we can see that prices began trending sharply lower as soon as they broke the 228 trendline breakdown point. This led the stock as low as $212 on the following day, providing a max gain of $16 from that trendline breakdown point. We were able to trade this live in the chat room and take a really nice gain from it. Make sure you check out my August 15th mentor session for an in-depth analysis on how we traded this opportunity.

Next up, let’s take a look at the Nvidia short day-trading alert that I shared in the large-cap chat room on August 14th. I noticed the triple bottom form on the chart at 151.11, so I mentioned to consider for a short below that level. This was the setup that I shared in that alert which shows us the triple bottom that formed at 151.11. Based on the triple bottom breakdown strategy that I share with students, you would have wanted to go short on the next break of 151.11. Going back to the chart, that turned out to be a very effective breakdown point for the stock. It helps prices to trend as low as 148.30, which provided a really nice day trading opportunity for us in the chat room.

The triple bottom breakdown strategy is simple yet effective, and you can learn more about it by signing up for the Warrior Pro Course. Moving on, let’s take a look at the LK short trading alert I shared with students in the chat room. I mentioned to watch LK for a breakdown below trend line that we can see here on the five-minute chart. This was a bear flag breakdown set up that formed eight three-point trendline, so we want it to go short on the fourth break of the trendline. Let’s take a look at the chart to see how this set up unfolded. The stock actually gapped higher before selling off and bouncing off of that trendline. But it ultimately failed to find support and broke through that trend line with momentum.

Now, let’s take a look at the XLU swing trade long alert I shared in the chat room. XLU formed a strong flat-top breakout set up at 61.19, which we can see here in this screenshot. Based on the flat top breakout strategy, you would have wanted to initiate a long position on the next breakout of 61.19. As we flip back to the chart, we can see that prices did in fact break out through that 61.19 level. Right now, the stock is in bullish territory above that level, so as long as we can maintain above, I think that XLU has room to move up to $65 over the next few weeks.

To wrap up today’s video, I’m watching CRWD for a short-term breakout above this $98 flat-top breakout level. This was a triple top level here in the past before it led to a short-term breakout up towards $100. That provided a great day trading opportunity. Now, the stock has fallen back into this multi-day consolidation base between $98 and 91.53. I think that we can see another potential breakout on it above that $98 flat top level. If the stock fails to make that breakout and instead begins to sell off, I’ll watch it for a potential short below 91.53.

This consolidation on the 60-minute chart is very likely to lead to a strong move for the stock, and I’ll make sure to keep it on close watch for a potential trade. There’s your five stocks for the week, traders. I hope you enjoyed the video, and I’ll see you in the large-cap chat room.

Oh hey, I didn’t see you there. I was just working on the dream board for my next home run trade. Hopefully, it comes soon. Until then, make sure you subscribe to get email alerts anytime I go live or upload new videos. Until then, happy surfing.