In this monthly chart of Tesla you can see that we've reached a supporting trendline that goes back to May 2014. I believe the fundamentals of Tesla are stronger than they were in 2014 so I expect the trendline to hold, but if it doesn't, I have a stop loss prepared right below the 50% retracement level.
The first conservative area for taking profit gives us a risk reward of 4x. For the more aggressive investor, you can use the upper-most trendline which would give you a risk reward of 8x or greater.
Please see my previous TSLA idea to see how well my last TSLA prediction worked out.
To be clear, I'm not sure if this trade is going to work nor do I assume any trade will work, the important thing here is the risk reward.
The first conservative area for taking profit gives us a risk reward of 4x. For the more aggressive investor, you can use the upper-most trendline which would give you a risk reward of 8x or greater.
Please see my previous TSLA idea to see how well my last TSLA prediction worked out.
To be clear, I'm not sure if this trade is going to work nor do I assume any trade will work, the important thing here is the risk reward.
Comment:
Took profit at 38.2% fib / purple falling wedge upper resistance. Couldn't close above it.
My goal is to find the best risk:reward setups. For instance, if you risk $1,000 at a chance to make $5,000, you can afford to be wrong 4 out of 5 times and still not lose money. I hit my targets over 50% of the time.
