AwesomeAvani

TSLA tyring to get to blue sky

Long
AwesomeAvani Updated   
NASDAQ:TSLA   Tesla
TSLA on the daily chart descended from a triple top Summer '22 into a downturn which

reversed after earnings in late January. Since then with the usual waves of up action and

retracement it has risen into its current range also going through a cup and handle pattern

from early April into late May. On the chart with the volume profile and anchored VWAP

overlaid, price is at the confluence of the POC line and the mean anchored VWAP - over the

past year the highest volume of trading was at about $185. RSLA is now above that

bullish momentum. TSLA short-selling bears are getting destroyed right now. Their buying to sell

is the genesis of a potential short squeeze. The latest trend started after an announcement of

partnership with Ford regarding charging stations. I have drawn onto the chart what I see

as horizontal resistance lines for targets in a trade. Aslo on the chart is a set of zero-lag EMAs

to provide further context. I will take a trade of four additional call options with a strike of

$185- I will close one for each horizontal target reached. I will run the last contract on a

trailing stop loss of 20% while expecting an overall conservative realized take profit of over

300%. The stabilization of macroeconomic headwinds in both the US, Europe and China

will allow significant tailwind to push TSLA higher. One of those tailwinds could be the

imperative that a rising price places on short sellers including a vast array of put options.

Trade active:
TSLA trending with +ADX looking for a bullish continuation toward the first target. Presuming that Musk will be helpful and find a way to keep a persistent newsfeed underway. Cathie Wood as a cheerleader is somewhat helpful.
Comment:
Trade active:
Blue sky is awesome ! Bought another call strike $300 out of the money for October
Trade active:
Tesla is on fire; hit the first target;part of first group of options closed ROI 218% using part of profits to buy another group for November at Strike $310
Trade active:
TSLA is scorching hot. I will change the second target to the last and make it 285.
I will not take any further partial profits until 265-266 range. The rate of price
appreciation shows extreme momentum. I uspect short sellers are covering like there is no tomorrow. In other words they are acting out of extreme need because if they don't they may get margin called and risk catastrophic account losses unless they have taken tiny positions. No matter bring on the squeeze. Don't you just love it?
Trade active:
TSLA now resting and being a good neighbor letting NIO, XPEV, and FCEL get some attention. If the fed pauses until August, I expect another leg much higher with cost of financing auto purchase stabilised. ( TSLA offering 5.5% OAC.
Trade active:
Another busy day for TSLA- sold one call option- profits recycled into NIO PSNY FSR and FCEL to diversify a bit.
Trade active:
Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.