Hello traders and investors! Let’s see what’s going on here on Tesla! Some of you own the stock, and you have the right of feeling anxious about it. But, with a solid plan, there’s nothing to worry! Here I’ll present you some strategies you can use right now on Tesla.
First, look at the hourly chart above. The trend is clearly bullish. Right now, the price is just about to find its support at the 21 ema, which is going up, by the way.
The sideways movement I evidenced in the blue rectangle has low volume, which is typical of an accumulation. Almost looks like a Flag pattern. So, there’s absolutely nothing to worry around here.
But, what could you do? Well, if you are still afraid, you could book your profits if you see a bearish pivot in the hourly chart. This would be an indicator of a further pullback.
But again, just a pullback, I’m not saying the trend is going to change. Pullbacks are just opportunities to buy or buy more/again.
There’s another strategy you can use, and it is better seen from the daily chart:
It is normal for Tesla to do some erratic movements after a bullish leg, so, if you plan to hold it for a while, this shouldn’t scare you at all. The trend is bullish, and pullbacks are natural movements. Don’t sell in panic your stocks to a smart portfolio manager who wants to increase his position paying a cheaper price for a good stock.
But, if you are planning on booking you profits, just look at this green line (previous top). If Tesla closes under it, just book all your profits. Because it will tell you that the stock is struggling, and it failed in doing a new top.
Then you can just buy it again when it gets closer to the 21 ema (or any other support, in any other time frame) after an interesting bullish candlestick/chart pattern. At this point, there’ll be some people panic selling it for sure, and you’ll be there, ready to buy it.
You can use these strategies to manage you position and I’m sure they will help you to manage your anxiety level. You could even mix them, and book half profits when you see a bearish pivot in the hourly chart, and the other half if Tesla loses the green line in the daily chart. That’s up to you.
And, please, support this idea if it helped you! Also, I invite to follow me for more analyses.
Meanwhile, there’re no clear targets for Tesla, since it is a bull trend doing new highs. My trading methodology is just reactive, not predictive, so, let’s just react properly to the market’s signs.
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I really appreciate your thorough analysis! However, I wanted to get more of your thoughts on the pull back in the short term. I feel like it may add some smaller profits to go ahead and sell off tomorrow at open and buy back in Friday or Monday. I expect it to bounce back next week, but I'm weary about Thursday/Friday.
(I'm a novice Robinhood trader so I don't really know anything)
Nathan_Black
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@ornlu88, Hey Ornlu! Yes, it could work, but I never recommend to short in a bull market. The risk/reward ratio is never good, and I always prefer to have the odds in my favor.
This is it, my view about the situation. Hope it helps.
Trade well.
goldenkat
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thank you for your work here :)
Nathan_Black
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@katgold You are welcome Kat! I'm glad that this analysis helped.
Thanks for the support. I wish you well.
coachhen
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Thank you for sharing your analysis. The upcoming split makes it very interesting in whether it will continue to trade sideways or have another new high prior to the split.
Nathan_Black
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@HenDawg48, Hello Hen! Yes, very interesting indeed! This will bring more liquidity for the stock, and this is a good thing. It is the right time for Tesla to split its stocks, in my view.
Either way, stay safe!
My best regards.
RedKTrader
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thank you @Nathan_Black for sharing.. very specific and clear analysis - the upcoming split is adding an interesting dynamic to the sentiment -- many folks would want to hold until after the split -- wk1 Sept will be big action
(I'm a novice Robinhood trader so I don't really know anything)