By Barrie Einarson

Hello traders,

Today, let’s break down a sneaky good trade on DATS, a social media platform stock that presented an excellent short opportunity thanks to our AI. To Subscribe: https://go.trade-ideas.com/SHQ
Use Promo Code BARRIE25 for 25% off

The AI flagged DATS as a parabolic mover, meaning it spiked too quickly, signaling a potential reversal. Our system identified a great short entry at $5.59, and the key psychological level to watch was $5.00. Once that broke, the stock moved lower, providing an impressive 12.5% gain from our entry.

Yesterday’s low at $4.54 was a potential stall point, but breaking through the VWAP (Volume Weighted Average Price) added further confirmation for the downside move. This is a perfect example of why following key levels and technical indicators can pay off big time.

The best part? Short shares were available at Interactive Brokers, making it an accessible trade for those quick enough to act.

Key Takeaways:

• Parabolic moves are prime short setups – When stocks move up too fast, they often retrace hard.
• Psychological levels matter – The $5.00 level was a key break for downside continuation.
• VWAP is your friend – A clean break of VWAP confirmed the bearish sentiment.

This trade highlights the importance of staying sharp, following technical levels, and letting the AI work for you. Great job to those who caught it!