If Tesla has been giving you problems, check out this video.
Discussed in this article: Tesla Motors Inc. ( $TSLA )
We’re looking at Tesla ( NASDAQ:TSLA ) here. This stock looks pretty weak doesn’t it? I mean you look at this, and by the way the company announces earnings on February 19th, expect the stock to move. Nice uptrend, sideways consolidation, oops, a breakdown, and now printing a lower high, close to the 200-day moving average. It sure looks like the stock’s just bouncing off the old river rock there, flowing right off the waterfall.
I don’t really see it that way, anything can happen after earnings, but I’m looking at Tesla ( NASDAQ:TSLA ) and it just seems kind of deceptively strong to me. It’ back above the 50-day moving average, its trading in a pretty tight trading range each day, these are not big wide ranging candles like you’ve seen here, and all these things back here. It’s actually pretty tight and so sloppy, sloppy, sloppy here, but finally the stock gets up above the 50-day moving average and it stays above it.
The 50-day moving average is holding, and yes, I know that the 50-day moving average is trending lower, that’s what happens to the average of the last 50 days of trading when this has happened to the prices, so we know this. What I would suggest doing is this, it’s actually pretty simple, get a drawing tool, I’m using mine, you use yours, and draw a line right across there. When Tesla ( NASDAQ:TSLA ) starts breaking out above that level, and I suspect it will soon, when it starts breaking out above that level just go ahead and buy some.
As long as it stays above the 200-day moving average you’re good to go, in fact I’ll go ahead and do that now, today’s intraday high was 150.40 so let’s go 151.00. I’m going to set this price alert on TC 2000 to 151.00 and I going to have it only do this one time, because I don’t want to get inundated, I get inundated with enough stuff, and let’s just use the old default settings here. Now, as far as the upside goes, I can forget about Tesla ( NASDAQ:TSLA ), my trading assistant, otherwise known as my software will let me know when they’re something remarkable happening. If nothing remarkable happens then there’s really no trade there, is there? So that’s what I would suggest you do on Tesla ( NASDAQ:TSLA ).