Tesla motors has been one of the darlings of this stealth bull market. While many have floundered within the current economic backdrop, others have flourished. Indeed, TSLA rose by more than 500%from its March bottom to the August peak.
When I look at TSLA's chart the first thought that comes to mind is, 'too far too fast'. Anticipating further gains after a 500% move is just asking for trouble and indeed, she gave up that mark through the early fall and confirmed its rejection over the past month. What is most interesting here is that each counter trend rally back into the OTE short sweet spot (70.5% retracement of previous move) turned out to be an excellent shorting window. The trades took little heat and provided some dramatic rewards.
We are currently flirting with the 50% retracement level of the entire bull run and as pointed out on the chart we are at almost the exact midpoint of a massive trading range. There is no trade at present. Rallies back into the OTE short ss ($162 - test of the trend line and gap fills) ought to represent interesting shorting windows. Failures back into the OTE long ss ($81 - test of the trend line and gap fills) ought to represent interesting buying windows.
When I look at TSLA's chart the first thought that comes to mind is, 'too far too fast'. Anticipating further gains after a 500% move is just asking for trouble and indeed, she gave up that mark through the early fall and confirmed its rejection over the past month. What is most interesting here is that each counter trend rally back into the OTE short sweet spot (70.5% retracement of previous move) turned out to be an excellent shorting window. The trades took little heat and provided some dramatic rewards.
We are currently flirting with the 50% retracement level of the entire bull run and as pointed out on the chart we are at almost the exact midpoint of a massive trading range. There is no trade at present. Rallies back into the OTE short ss ($162 - test of the trend line and gap fills) ought to represent interesting shorting windows. Failures back into the OTE long ss ($81 - test of the trend line and gap fills) ought to represent interesting buying windows.