For those of you who don't know, I shorted Tesla at $950 and am holding it for a swing trade. I'm currently ~30% in profit in a few days.
However, this looks primed to go up and fill the gap above at $900. At this point, it is too soon to tell if we go higher than $900 (green line) and make new highs but I want to be hedged against my position in case we blast off.
The plan: - Shorted TSLA at $950 - Long $750 (hedge) - Take 50% profit at $900 - Let the rest ride until rejection
I've always stated I don't rule out the possibility of Tesla at $1,000+ in the short term. But I will be adding short anywhere above $1,000 and holding it for a long term trade. For now, buy the dip!
For those of you don't follow me on social media and missed my original short call, check it out below!
I agree. From TA standpoint this stock will go up soon. The rest doesn't make sense so let's not bother explaining ;)
mickleicester
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Tesla Q1 will be bad
noochboy
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Great analysis, but aren't we rather looking at a bearish penant and it would rather move down to the 500$-600$ area before going to 900$ again? Fibonacci levels indicate there is a possibility for it to go to +- 573$
That's my input (with my limited TA skills). I agree with the rest of your strategy though. Seems thurough
Annoying that I panicked and ended my short when it went from 900 ish to 760ish... should have kept it, but if one'd know it all in advance he wouldn't have to work anymore ;-)
MWCarter
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@noochboy, the fact that we held the MAs and have the potential to gap up in a major way (for more temporary euphoria) leads me to believe we bounce soon. I simply cannot see Tesla just dumping another $200 after such bullishness without a relief bounce.