By Barrie Einarson | Trade Ideas

Hey everyone, Barrie Einarson from Trade Ideas with today’s edition of What Makes This Trade Great? To Subscribe to Trade Ideas: https://go.trade-ideas.com/SHQ
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We’ve got a really nice one from our AI today, guys, with ENGN, and what’s especially interesting about this trade is what we’re seeing on the longer-term charts.

Our AI picked up ENGN at $2.00 around 10:07 a.m. Eastern Time.

Now, the stock didn’t take off immediately. It bounced around for a while, showing some choppy price action before finally gaining momentum around 10:50 a.m.

And once it started moving, it really didn’t look back!

ENGN climbed from the original $2.00 alert to approximately $2.30, with just a couple of small pullbacks along the way.

That’s a really nice move from our AI alert.

But here’s what makes this one particularly interesting.

Take a look at the monthly chart.

When we zoom out and look at the bigger picture, we can see that ENGN has quite a bit of room before reaching its next major historical resistance level.

The next significant high I’m watching is around $8.93, which dates back to May of this year.

Now, I’m certainly not saying ENGN is going to reach $8.93 today, or even that it will get there at all. But when you’re looking at potential momentum trades, it’s important to understand where those previous resistance levels are.

And in this case, there isn’t much obvious historical resistance between the current price and that higher level.

That’s what makes this setup so interesting.

The big takeaway? Don’t just focus on the intraday chart. Sometimes zooming out to the daily or monthly chart can give you a much better understanding of where a stock might encounter resistance.

Our AI identified ENGN early, and after a little patience, the stock delivered a strong move higher.

Now I’ll be watching to see whether that momentum can continue.

Another great alert from our AI today!