Hello, traders! Barrie Einarson here from Trade Ideas with today’s edition of “What Makes This Trade Great.”

Today, we’re diving into a fabulous short trade opportunity identified by our AI—FMDT. Let’s break down why this trade stood out and performed so well.To Subscribe: https://go.trade-ideas.com/SHQ
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The Alert

First, we received the alert at $23.11, indicated by the down arrow on our charts. Despite a brief green bar, the stock has trended straight down from $23.11 to below $18. This consistent downward movement is a hallmark of a strong short trade.

Pre-Market Insights

Interestingly, FMDT had some positive pre-market news. According to my interactive brokers’ headlines, the company announced positive Phase II interim results. Typically, such news might drive a stock price up, which it initially did in the pre-market.

Market Open Dynamics

However, the dynamics shifted as soon as the market opened at 9:30 AM. Despite the positive news, the market reacted negatively, leading to a sharp decline. This illustrates the importance of market sentiment and the fact that sometimes, even positive news cannot sustain a stock’s price.

Current Support Level

Currently, there appears to be some support around the $16.11 level. I’ll be watching closely to see if the stock bounces off this level, which could present another trading opportunity.

Conclusion

This FMDT trade is a perfect example of how our AI can pinpoint great trading opportunities. Even with seemingly positive news, market reactions can vary, and having the right tools to navigate these waters is crucial.

That’s all for today. I’ll be heading back to our trading room now, but I’ll see you tomorrow with more insights. Happy trading! Check out my homepage here