I can't believe I'm saying this but TSLA is setting up to be a nice short. Many have died by these words so I'll take a neutral perspective (I'm a TSLA bull fundamentally) — technically TSLA has 2 gaps lower to fill and seems to be rolling over In a triangle. There are so many interesting things to see in this chart in terms of change of momentum at the top but to keep it simple, I would be short TSLA at the top of down channel here unless momentum breaks pattern up. If pattern breaks up check if it's a fakeout or if it's a real breakout - does it have legs?
I drew two possible lower lines with a strong possibility of neither. I'm not trying to predict anything as much as possibly identify potential patterns. TSLA displaying classic signs of rolling over and while I'm not looking to stay short TSLA for long there may be a nice opportunity to use short term options and lower risk in $ allocated to trade for potential reward. May have a go at this with short term OTM puts - not a large trade but a trade that I'm interested to see play out.
Another interesting thing a trader friend made me aware of (thanks) is the squeeze setup here. I don't trade squeezes religiously like some but I have found them useful enough when trading that I've kept the indicator on my chart. Look at the change in momentum to red from blue as we roll over.
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1hr
1day
I drew two possible lower lines with a strong possibility of neither. I'm not trying to predict anything as much as possibly identify potential patterns. TSLA displaying classic signs of rolling over and while I'm not looking to stay short TSLA for long there may be a nice opportunity to use short term options and lower risk in $ allocated to trade for potential reward. May have a go at this with short term OTM puts - not a large trade but a trade that I'm interested to see play out.
Another interesting thing a trader friend made me aware of (thanks) is the squeeze setup here. I don't trade squeezes religiously like some but I have found them useful enough when trading that I've kept the indicator on my chart. Look at the change in momentum to red from blue as we roll over.
30min
1hr
1day
Comment:
With trendline