Looking at the chart and the latest earnings, there's little evidence to support a bullish case for this stock and growing evidence pointing to moves to the downside.
The daily chart printed a bearish engulfing candle. There's been zero follow through buying since what the fanbois have labeled "blockbuster" earnings. The daily chart is a technical mess with lots of gaps and significant RSI divergence with the latest high.
TSLA is losing market share in Europe, the most mature EV market. The operating margin of 5% reported in the latest earnings report is pitiful. Rising commodities costs over the next few years will make it challenging to improve on these numbers. The recent price cuts for the cars points to waning demand. That could be COVID related and bounce back? It could also get worse with the virus still being a wild card. The growth in car sales certainly hasn't been significant enough to justify the lofty valuation.
If you look at this company and it's stock price rationally, only a fool would go long at these levels. Wait for a pullback to the ~$650 range which lines up nicely with a retracement to the .786 level and close the gap. That still leaves the gap around ~$260 to be filled.
I'm long Dec puts. This aligns also with election related volatility that is more likely to lead to lower prices. Look at buying puts at levels with the most open interest such as the $380 level with 15,620 open contracts.
Good luck!
The daily chart printed a bearish engulfing candle. There's been zero follow through buying since what the fanbois have labeled "blockbuster" earnings. The daily chart is a technical mess with lots of gaps and significant RSI divergence with the latest high.
TSLA is losing market share in Europe, the most mature EV market. The operating margin of 5% reported in the latest earnings report is pitiful. Rising commodities costs over the next few years will make it challenging to improve on these numbers. The recent price cuts for the cars points to waning demand. That could be COVID related and bounce back? It could also get worse with the virus still being a wild card. The growth in car sales certainly hasn't been significant enough to justify the lofty valuation.
If you look at this company and it's stock price rationally, only a fool would go long at these levels. Wait for a pullback to the ~$650 range which lines up nicely with a retracement to the .786 level and close the gap. That still leaves the gap around ~$260 to be filled.
I'm long Dec puts. This aligns also with election related volatility that is more likely to lead to lower prices. Look at buying puts at levels with the most open interest such as the $380 level with 15,620 open contracts.
Good luck!