Tesla Motors - TSLA - Daily - Key Level Halts the Decline

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I've been trying to comment as usefully as possible in Tesla             . When it is oversold it has looked like a buy, but then I realized it was going down on falling gasoline prices, which made me look for lower levels of support and valuation levels to buy shares. I didn't short the stock, but should have.

There are lows from November 2013             and January 2014 where the PSR             was lower at 8.5 and 8.7. Those numbers are adjusted after Tesla             reports earnings and are back-dated, so you'd have to know what sales are going to be (probably up 20% or more at least) to know what the current PSR             is going to be, when we look back at it from the future.

Either way, TSLA             is down 87 pts or 30% from the high when it hit the low today at 204.27 and perhaps the shorts are covering here, which would explain the bounce. But what is interesting is that the "key levels of support" that I have found nailed the bottom of the decline today and have provided very useful references for price action for quite some time. 204.5 and 198.3 are the "key levels" of support and 229 - 237 are the key levels of resistance where you will find sellers.

Any positive news on the Model-X and Tesla             could move up to the 240-260 area. I'm a buyer on weakness to key levels where the price range contracts. Stay tuned.

Tim 2:12PM EST 12/9/2014 TSLA             215.19 last
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Do you think it will go up from here or it will break it?
TSLA didn't give us a "price range contraction" but at least the "key levels" held with enough margin of error. If you use at least 2 average true ranges from your entry (I recommend 3), then you will have a great profit at this point.
Tim is that what you use on an average for a stop loss (3 ATR)?
timwest PRO Ghostrider7
Yes. I use 3 ATR's. My ATR(11) - 11 days is a good number of days to use. It is half of a month, which is 22 days. True ranges are key as they include the gap from overnight action.
OK thank you.
Did you see 204 as a buying level or waiting for 198?
Thanks for the question 2use. I just buy across a range of times and prices. Tesla is volatile and I like to spread the entry around to at least 5 prices. Any of the key levels are good.
tim what's the PSR indicator you're showing
timwest PRO Gordon_princess_Gecko
PSR = Price Sales Ratio = It's available in the indicators menu. Search for "price sales". It is the ratio between the valuation of the company to the gross revenues of the company. It is a better way to look at valuation than P/E (Price/Earnings) because earnings are highly variable and sales are more stable. Sales X Margins = Earnings, so I find it is better to have understanding of how the earnings are derived, from sales growth or from margins expanding.