Tesla ($TSLA) gapped and crapped. But………..here’s how one single alert can allow you to trade this for a big profit. (November 17, 2020)TSLA
Suddenly Tesla ( NASDAQ: TSLA ) got really easy and here’s why: The stock is going to be added tot he S&P 500 ( INDEXSP: .INX ) before the start of trading on December 21st. And so that means that every fund that tracks the S&P 500 ( INDEXSP: .INX ) has to have Tesla ( NASDAQ: TSLA ) in it’s stocking before Santa Claus comes down the chimney after parking his EV sled up on the roof with Rudolph’s glowing nose, certainly an LED light I’m sure.
That’s going to be a lot of buying that’s going to have to happen, but the thing is it doesn’t happen today. I’m sure there was some buying for every share that was sold and there were over 61 million of them, somebody bought that share. So there was buying here but the sellers really overwhelmed it. You could see right out of the chute, the stock gaps up, and then it trades off immediately.
And so why am I saying Tesla ( NASDAQ: TSLA ) got really easy? This is why: Because you don’t want to fart around with this as long as it’s in this box. This is not your friend; we can go to an hourly chart, whatever you want. This is not your friend; this is a chart that you just want to stay away from unless you want to gamble.
If you are a day trader you can be going like, oh, I can trade this. Well, you go on ahead and do that. I want to go make some money someplace else and this not a place where you are going to make money. It’s a place where you are basically going to give it away to somebody else, so don’t do that.
Instead, just do it this way; this is the top, we’ll call it 460.00, it’s actually 462.00 but we’ll call it 460.00. Set a price alert at 460.00 on your software. Don’t wait for my alert to come to you, it’s by email, you may be getting a cup of coffee or something, so don’t wait for that. Set an alert on your software trading platform to fire off at 460.00 and that is when you want to consider buying Tesla ( NASDAQ: TSLA ).
You always want to look at the chart but until Tesla ( NASDAQ: TSLA ) breaks through 460.00 or again, actually 462.00, but until it breaks through there you shouldn’t want any part of Tesla ( NASDAQ: TSLA ), it is just a money-sucking fiend. Once it breaks through 462.00 then it literally has just blue sky; because this last resistance level here, from back in early September, those sellers are long gone.
Anybody who is losing money on this trade here, they have already liquidated their shares or they are just not going to sell. In either event, they are not going to give you the kind of resistance that you might think you are going to get. All of the resistance is right here at 460.00. Once this thing breaks through that’s your “huckleberry”. Your next stop will be 500.00; who knows after that? I don’t and I’m not going to tell you that I do.