Warrior Trading Blog

Arsh’s 5 Stocks in 5 Minutes | Arsh’s Trade Analysis


What’s up, Warriors? Welcome back to another episode of 5 Stocks in 5 Minutes. My name is Arsh, and today I’ll be sharing five of the most interesting technical trading opportunities in the large cap stock market. All of these trading ideas are based off of strategies that I teach in the Warrior Pro course. So make sure to sign up for that, using coupon code R30 for a 30% discount. If you’re not already a member, that’s going to allow you to take my course, trade alongside me in the large cap chat room, and attended my weekly mentor sessions. I hope to see you there. With that, let’s go ahead and get started with today’s video.

I’ll begin today’s video by recapping a trailer I shared on the stock EA. Here’s a clip from my previous 5 Stocks in 5 Minutes video, where I alerted EA for a short below $91. I think that the weakness in the stock is a sign that it’s getting ready to fail this 91 support, so I’ll be closely watching it to go short on a break of that level. Looking back at the chart, we can see that the 91 level did in fact break on the next test, and that provided a great short trading opportunity down to $88 before the stock finally balanced. As long as you came in with a reasonable stop loss on this trade, it did provide a pretty good risk reward ratio. This was a textbook pattern, called the flat bottom breakdown setup, and it’s one of the strategies that I share with students in the community.

Moving on, here’s the setup that I identified on LK, and shared with our students in the large cap chat room. After a few weeks of sideways consolidation, LK started to show signs of a potential move higher, as it began curling up towards these key trend lines. I shared this screenshot with students to highlight this bull-fly breakout setup, along with these trendline breakout points. And I marked off the next two resistance levels of 22.30 and $26, which you could’ve used as your targets for this trade. Looking back at the chart, we can see that LK had a tremendous bull-fly break out through those trend lines. In just a few days, the stock managed to run from the $20.80 breakout point, up to as high as about $25. We were able to capture a really nice move on this breakout up towards 23. And at this point, the stock is probably headed towards the next resistance of $26.

Next up, let’s say you look at Netflix, which provided some great trading opportunities after its earnings this last week, including this triple bottom breakdown short opportunity that I shared with students in our chat room. The idea was to go short on the next break of 320.50, which we can see here in this screenshot. Going back to the chart, Netflix made an incredible breakdown through that 320.50 level. As soon as it broke that triple bottom, prices did not look back, and managed to fade as low as $314 by the end of the day. The Following day, the stock dropped to as low as $306. This was another simple, yet effective, opportunity that provided an incredible risk reward ratio to anybody who traded at short.

We just looked at a recent triple bottom breakdown setup with Netflix. And now, let’s look at a recent triple top breakout setup. We saw one form today on the stock BYND, which I shared in the chat room with our students through this announcement. BYND had formed a triple top at 231, so that made it an interesting setup to consider for a long on the next break of 231. Going back to the chart, we can see that it managed to break 231 on the fourth test, and was able to move as high as $240 over the next hour. This was definitely a great trade for us in the chat room. One of our students, Jenny, was actually able to take a $2,300 gain on the trade, which is really awesome.

To wrap up today’s video, Uber is back on the watch list for a long, through the $45 breakout point. I recently attempted a short on the stock, as it broke this lower trendline, but I was stopped out for a small loss after it failed to move lower as I expected. Because we failed to break down, I think that’s a sign that the stock may be getting ready, once again, for the $45 breakout, where I’m going to be considering it for a long position. The stock is getting a nice lift higher today, so it may be ready to trigger pretty soon. I’m going to keep my risk tight because the stock should break out through 45 with ease. If it doesn’t, I’ll exit, and reconsider the trade.

All right, traders, I hope you enjoyed this episode of 5 Stocks in 5 Minutes, and I’ll see you in the large cap chat room.

Oh, hey, I didn’t see you there. Well 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.