TSLA has formed a rather obvious reverse H&S pattern with an uneven neckline. Many eyes should be on this tomorrow especially given Cathy Wood's new price target of 3K. 700 appears to be the key level to watch. If price is able reclaim that level a push to 740 then 800 would be possible. Currently price sits on the bottom of the neutral zone. If price is unable to hold above that level expect sideways to lower price action as the neutral will become resistance. Best to watch the QQQ/NAS and ARKK for support in a bullish move.
Additional Info:
I am an intraday scalper and short term swing trader of stocks & Futures using options and equity.
I focus on high volume momentum stocks in strong uptrends.
My time frame is between 5minutes to 5 days on most trades.
I scale into positions and scale out of positions as my targets are hit.
I always trail my stops after T1 is hit to reduce risk and lock in gains.
If my post is on a Weekly/Daily/240M chart the idea is a swing trade.
If my post is on a 60M chart or lower the idea is a day trade.
Day trades can turn into swing trades if the stock is strong.
All trades should be supported by market direction.
Treat my posts as trade ideas and not signals.
Traders must trade using their own back tested trade plan and rules.
Traders must plan risk first and profits second.
Additional Additional Info:
If you use options to trade high IV stocks it is crucial to wait for some consolidation or a pull back.
If you buy an option when price is stretched you will find that even when the instrument trades in your
direction you will lose money because you will have paid too much premium.
Simple rule = BUY options when candles are SMALL and SELL options when candles are BIG.
Additional Info:
I am an intraday scalper and short term swing trader of stocks & Futures using options and equity.
I focus on high volume momentum stocks in strong uptrends.
My time frame is between 5minutes to 5 days on most trades.
I scale into positions and scale out of positions as my targets are hit.
I always trail my stops after T1 is hit to reduce risk and lock in gains.
If my post is on a Weekly/Daily/240M chart the idea is a swing trade.
If my post is on a 60M chart or lower the idea is a day trade.
Day trades can turn into swing trades if the stock is strong.
All trades should be supported by market direction.
Treat my posts as trade ideas and not signals.
Traders must trade using their own back tested trade plan and rules.
Traders must plan risk first and profits second.
Additional Additional Info:
If you use options to trade high IV stocks it is crucial to wait for some consolidation or a pull back.
If you buy an option when price is stretched you will find that even when the instrument trades in your
direction you will lose money because you will have paid too much premium.
Simple rule = BUY options when candles are SMALL and SELL options when candles are BIG.
Comment:
Gapped yesterday and pushed up to 700 then rejected back down. Plenty of short term day trade money in then market right now. Everyone seem to be an opening range trader taking profits on the initial am move. The neckline of of this pattern will be resistance until its not. The easier play is above 700.
Comment:
Finished the week below the neutral which is not great but closed above yesterday's low which offers some hope as it had a chance to flush lower but didn't. See what next week holds.
