Warrior Trading Blog

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


Welcome back traders. It’s Arsh. I’m here again with another episode of Five Stocks in Five Minutes. I’ll be sharing five of the most important stocks on my watch list and I hope to help you understand how I analyze and search for trades in the large cap stock and options market.

While these videos are a good way for you to learn about my strategy, I definitely recommend signing up for the warrior pro course if you’re not a member already, so that you can maximize your education.

I’m looking forward to your comments and questions below and I’ll be back to reply later. Let’s get started with today’s video.

Let’s begin today’s video by going over a swing trade alert that I sent on the stock WMT. I shared this announcement with students in our large cap chatroom a few weeks ago where I told them to consider going long on WMT, above the yellow trendline that I shared in the screenshot. This was an opportunity that provided a one to ten risk reward potential. Here’s a screenshot of the setup that was taking place, along with the trendline that I told students to watch for the breakout.

Based on the trendline consolidation breakout strategy that I shared with our students, I knew that WMT was getting ready to make a move. Looking back at the chart we can see just how extremely effective this trendline breakout has been for WMT. Not only did it hit the final target of 110, which were previous all time highs, but it’s shot well past it now and this is definitely been an amazing swing trade opportunity that many of us in the large cap chatroom were able to take advantage of.

Next up, let’s talk about CGC, which is a stock that’s had a very predictable collapse in the last few trading days. Here are some of the alerts that I shared in the chatroom on July 10th, which included a short idea on CGC where I was expecting a breakdown of the flat bottom base that had formed in the screenshot. That level was specifically the 38, 38 triple bottom level, which we can see here.

The stock had bounced off of that level on a second and third occasion here, which made it very interesting to consider for a short trade on the next break of that level. Now, going back to the chart, we can see just how well that breakdown has worked for this stock. In just two days the stock has managed to drop over 10% from the 38, 38 breakdown point. During a slower period for the markets this is definitely one of the best momentum trades that we’ve seen and I’m glad I was able to alert it for students before it took place.

Moving on. Let’s quickly recap a swing trade alert I shared this week on DBX. I noticed a very bullish consolidation pattern forming on it’s 60 minute and daily charts as well as some very heavy increases in volume, which we can see down here. Along with these bullish technical signs there was a last minute big money call sweep, which in other words means that someone was taking a very big position in the stock using options in anticipation of a big move higher.

So, I shared this alert with students on July 10th in our chatroom for them to consider the stock long above 25.42, which was the flat top breakout zone. Since that trade alert was sent the stock has been moving in the right direction and is currently up about 3% from that breakout zone. I think that this is a good sign for the stock to move towards 27 in the coming few days, especially with the overall market being as strong as it is.

You can find all of these alerts before they trigger and much more by being a subscriber to our large cap chatroom. So, make sure to use coupon code Arsh30 for a 30% discount if you’re not already a member.

All right, let’s talk about some of the stocks that I’m closely walking for trades in the coming few days, which includes EA. I’m interested in this stock for a short trade below the $91 flat bottom base that’s been in place since the middle of April. The stock has failed to break out of this consolidation here and has very quickly reversed back down to the $91 support level. 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.

We also have a three point trendline down here, which can be used as an add point for the trade. Earnings are coming up in about two weeks, so I’m going to make sure to close out any trades I have on the stock before they’re released, and then I’ll reconsider it after. To wrap it up, I’m closely watching Uber for a breakdown of this consolidation pattern that it’s been in for the last few weeks. I’m feeling bearish on the stock due to the fact that it failed the $45 breakout a few weeks ago, which signals a bull trap to me. The stock should not have reversed that breakout as sharply as it did. That tells me that a breakdown of this three point trendline can lead to further sell pressure in the stock.

I’ll definitely be closely watching the stock to go short on a break of that level, which could lead it towards the following support levels down here at 41.71, 40.70 and then 39.15. We could also potentially see a breakout above 45 if the stock gets back up there so it’s important to wait for the stock to move out of this consolidation before you consider a trade.

There’s my five stocks for you this week traders. I hope you enjoyed the video and I’ll see you in the large cap chatroom.

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.