One of the first things you learn with trading stocks is "The Trend Is Your Friend". This was the case with NVDA as it is now with Tesla. In this 2 hour chart you can clearly see that the last Bullish Moving Average Cross was Signalled on May 25th. There have been several Macd + and - signals along the way that you can see however I always like to see thge MA Crosses as a signal confirmation for a potential move in either direction. I've also set up on this chart a very tight 7 day EMA to act as the trendline as you can see how each candle respects the line. I had to look at many different timeframes and indicators to try and get rid of the noise and I believe this just may be our best combination on the 2 hour chart. each day since May 25th the Price has move up slowly and methodically like a staircase with no Bears insight. That in itself has been very disconcerting as Tesla has for many years now been recognized as one of the most volatile and highly shorted stocks in the Markets.
So perhaps this particular selection of indicators is "too little too late" and we're all thinking the price has gone up too high already without a healthy retracement, however I had provided in a couple of previous charts that a short term price of $280.00 was possible along with a Year end target of $328 so is it all too surprising that we're here now? Perhaps early by my expectations but certainly on target.
So from here to reach my short term target we only have another 7.7% to go from $260.00 to $280.00 and 26.2% to move from $260.00 to $328.00.
You need to ask yourself now.... At these lofty valuations is it beneficial to take a new position in Tesla? Or if you already have a position, ask yourself, Should I be taking profits now or wait for a Bearish MA Cross on the 2 hour chart?
The Trend is Your Friend but are there also perhaps better opportunities out there in the short term that you may be missing out on to trade? Really though at the end of the day Tesla is one company that everyone should hold in their portfolio for several years to reap the longterm benefits which will be Very Very Worth your While.
So perhaps this particular selection of indicators is "too little too late" and we're all thinking the price has gone up too high already without a healthy retracement, however I had provided in a couple of previous charts that a short term price of $280.00 was possible along with a Year end target of $328 so is it all too surprising that we're here now? Perhaps early by my expectations but certainly on target.
So from here to reach my short term target we only have another 7.7% to go from $260.00 to $280.00 and 26.2% to move from $260.00 to $328.00.
You need to ask yourself now.... At these lofty valuations is it beneficial to take a new position in Tesla? Or if you already have a position, ask yourself, Should I be taking profits now or wait for a Bearish MA Cross on the 2 hour chart?
The Trend is Your Friend but are there also perhaps better opportunities out there in the short term that you may be missing out on to trade? Really though at the end of the day Tesla is one company that everyone should hold in their portfolio for several years to reap the longterm benefits which will be Very Very Worth your While.
Comment:
Here's the updated Chart with the 2 hour price candles continuing to remain below the 7 EMA Trendline. As well, as I said to expect the Bearish Moving Average Cross to form confirming a clear reversal. Price Targets are estimates for support.
Once again after hours trading and another Step in the Staircase has been made without a Bear in sight. 3 or 4 months back EM stated he was putting together a legal team to fight the Bears and stop them shorting of the company. He also made a statement regarding a Share Buy Back Plan. I believe he has a Month to disclose any Purchases or Sales of shares. I'm thinking that EM's Legal Team struck a deal with the companies Shorting, to stop, at least during the time frame necessary for the accumulation. The Buying has just been too Methodical for 3 weeks now.