Hey, Traders,

New Era Energy & Digital, Inc. (NASDAQ: NUAI) slammed near $6 today like it hit a brick wall. 

That’s the kind of action I watch closely because failed breakouts tell you a lot.

Sounds weird, right? 

You’d think we’d always want stocks to break out clean, go parabolic, and make things easy. 

But failed breakouts are where I’ve found some of my best trades, especially when the crowd gets trapped.

In this case, the stock had a strong push premarket and into the open, with a key level around $6. 

That was the breakout spot everyone was watching, and for a second, it looked like it might go.

It tested $6 a few times as volume picked up, and I’m sure a lot of traders got long there, thinking this was the next big runner.

But instead of breaking out and holding, it did the opposite. 

NUAI pushed right up to that $6 wall — and then it started to fade. 

Let’s understand why and how. 

Strength vs. Fluff

Once a stock fakes out like that, especially on a key level like $6, a bunch of people are usually stuck in it. 

Traders who chased the breakout have to decide: Do they hold and hope, or do they panic and sell? 

When that panic hits, it can create a clean backside move.

That’s what I look for.

On NUAI, when it couldn’t hold above $6 and started to roll over, that was the sign for me that the breakout had failed. It was a clear rejection: 

After that, it mostly faded the rest of the day. 

If you timed it right, it gave a solid opportunity on the short side.

The key for me is being patient. 

I’ve been the guy who bought breakouts too early, and I’ve been the guy stuck on the wrong side. 

But now I wait and let the chart show me the truth:

Is there real strength, or is it fluff?

A Special Insight 

Failed breakouts tell you what not to buy — and they tell you where the edge is. 

When a stock fails at a level that everyone’s watching, you know where the emotional pain is. 

That’s powerful.

This is something I’ve added to my playbook over the years. 

It takes time to see these in real time, but once you do, they become one of the cleanest patterns out there. 

Just watch how volume shifts, how fast it pulls back after the fakeout, and whether it breaks key support after that.

So, next time you see a hyped-up breakout setting up, don’t rush in. 

Watch what happens after. 

There’s usually more edge in the reaction than the move itself.

See you out there,

Jack