Hey everyone,
Barrie Einarson from Trade Ideas here with today’s breakdown of What Makes This Trade Great. Today we’re looking at CDNA (CareDx Inc.)—a textbook example of how combining AI alerts with solid chart analysis can give you an edge. To Subscribe: https://go.trade-ideas.com/SHQ
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🎯 The Setup

CDNA was alerted by our AI Holly right around 12:30–12:35 PM. What made this one pop on my radar wasn’t just the alert—it was what I saw when I zoomed out to the daily chart.

Last Thursday, the stock got hit with some rough news—something about not being accepted on a healthcare plan. Being in Canada, I won’t pretend to fully understand the U.S. system, but it was clearly significant enough to hammer the stock. A bit of a PR cleanup on Friday helped it stabilize.

Then Monday came—and CDNA showed signs of life.

🚀 The Move

The AI alert came before the pullback, with the stock shooting up to $13.15. I didn’t chase it right away. Instead, I waited. Why? Because I saw something interesting on the daily chart—the next major resistance level is sitting way up near $18.

So, I’m watching the $13.15 level closely. If we get an afternoon move to take out that high, we could see some momentum step in. The risk-to-reward gets interesting if it starts clearing that zone.

🧠 The Takeaway

This is where patience and preparation meet opportunity. It’s not just about reacting to alerts—it’s about understanding the bigger picture. CDNA had a news flush, followed by stabilization, and now it’s showing potential for a technical breakout. That’s the kind of pattern that gets me interested.

If you’re watching CDNA, keep an eye on that $13.15 level and beyond. I know I will be.

Trade safe and stay sharp out there.

— Barrie