The last chart on Tesla nailed the top zone.
The question now is: What do you do next?
Today is day one of a decline off of the high that has 6-days at one price (at the 250+ level). If TSLA holds here until the close, it sets up 5 more days of decline. However the drop in price is already in line with the high at 263 and the mode around 250, which implied a drop back to 237 where it fell to today.
So, this is just an update. It is not pointing out a low-risk, high-probability trade. I am merely updating you on the setup of the time that expired for TSLA at the high from the 12-day rally, the 5-day rally and the 3-day rally all expiring one day after each other.
TSLA can lauch on a new upward projectile once it climbs back above the mode since the high. You can approximate that by using a moving average of the number of days since it peaked which right now was 8 days ago. So, use an 8 day moving average now to find key resistance. Tomorrow, change your moving average to 9 and so on. Just count back to the number of days since the high.
If you are short TSLA, this is a good place to cover. Hence my "neutral" stance awaiting a rally to 250 to sell short with a stop and reverse at 255.
Cheers.
Tim 12:55PM EST, 3/10/2014
The question now is: What do you do next?
Today is day one of a decline off of the high that has 6-days at one price (at the 250+ level). If TSLA holds here until the close, it sets up 5 more days of decline. However the drop in price is already in line with the high at 263 and the mode around 250, which implied a drop back to 237 where it fell to today.
So, this is just an update. It is not pointing out a low-risk, high-probability trade. I am merely updating you on the setup of the time that expired for TSLA at the high from the 12-day rally, the 5-day rally and the 3-day rally all expiring one day after each other.
TSLA can lauch on a new upward projectile once it climbs back above the mode since the high. You can approximate that by using a moving average of the number of days since it peaked which right now was 8 days ago. So, use an 8 day moving average now to find key resistance. Tomorrow, change your moving average to 9 and so on. Just count back to the number of days since the high.
If you are short TSLA, this is a good place to cover. Hence my "neutral" stance awaiting a rally to 250 to sell short with a stop and reverse at 255.
Cheers.
Tim 12:55PM EST, 3/10/2014
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