Hello everyone, Barrie Einarson here from Trade Ideas with today’s edition of “What Makes This Trade Great.” Today, I want to share a fantastic trade we had with Lumen Technologies (LUMN), thanks to a significant catalyst. To Subscribe: https://go.trade-ideas.com/SHQ
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The Catalyst

Lumen had a monster press release this morning, announcing $5 billion in contracts. This kind of news is a huge catalyst, setting the stage for a potential breakout. Our alert came in at $4.16, and from there, it was all about watching the key levels.

Key Levels and Entry

For those of you in the trading room, you know that $4.20 was the critical level to watch. Looking at the daily chart, $4.20 was the high from a few days ago, and LUMN had been struggling to break through this resistance.

Once LUMN took out $4.20, it was game on. The initial alert at $4.16 came in on a five-minute candle at 9:45 AM, but it chopped around for a bit before making a decisive move. When it finally broke through $4.20, that was my signal to enter the trade.

Trade Management

After entering, I managed the trade carefully. I took some off around the $4.50 level, and then as it approached $5.00, I decided to exit under $5.00. Throughout this process, I relied on the “Go No Go” charts, which guided me to lighten my load at the right moments. These charts are excellent for indicating color transitions, signaling when to stay in or exit a trade.

Market Context

It’s worth noting that the SPY had a decent bounce today, which likely provided some tailwind for LUMN’s move. Whether this bounce will hold is uncertain, but it certainly helped today’s trade.

This LUMN trade exemplifies the importance of key levels and market context. Watching for critical breakouts and using reliable tools like the “Go No Go” charts can make all the difference.Check out my Homepage for more information.

I’ll be heading back to our trading room now, but I hope you found this breakdown helpful. Have a great evening, and we’ll see you tomorrow.