In the chart below, notice how Tesla Motors Inc moved up, getting extremely extended from the twenty day moving average, represented by the yellow line. Think of the twenty day moving average as the recharging station. Tesla's epic move higher used up all of the energy. Tesla Motors Inc (NASDAQ:TSLA) only went back twice this year to the twenty day moving average, not allowing buyers to build up energy for a healthy long term move up. At $265, Tesla Motors, Inc. was clearly out of range and no where near any kind of significant support, causing the equity to sell off sharply.
As always this kind of move creates opportunities for knowledgeable technical traders. So where is the next Supercharging Station for Tesla Motors Inc (NASDAQ:TSLA)? The chart below is showing us that near term support will be around the $165 level (represented by the 1st grey line). This will bring about a short term bounce (1-2 weeks). However if you want to enjoy a longer ride in Tesla Motors Inc (NASDAQ:TSLA), the Supercharging Station will be at, $140.59 (represented by the 2nd grey line). This is where the stock will find significant support for a longer and safer ride up.
If you want swing trade setups where you get the exact entry points from the pros to profit from moves like this, join the The Elite Round Table. This is where the best traders in the world joined forces to give their knowledge and trades to anyone willing to step up to the plate. Profit for life with the Elite Round Table.
Pro Trader, The Elite Round Table