Tight, bullish pattern on Tesla (TSLA) (November 11, 2014)
I want to look at Tesla ( NASDAQ:TSLA ) today. This stock has had a really impressive move, almost 10 percent off of the 200-day moving average, which did hold as support. When I look at this chart I see one that moves higher from here.
The way this stock is trading now I would look at this as being a pretty solid support pattern, this is essentially resistance here, right? But it’s starting to move up and so if the stock does happen to pull back, it’s right at the 50-day moving average, but that certainly didn’t seen to impact it today. If it happens to pull back I think this is a buying opportunity for you.
I think you can buy this stock and be pretty confident that this channel is going to hold here. It has in the past when it was really at critical levels and there’s been good news coming out of the company as far as sales. I’m looking at this and I see this, I wouldn’t really call it a cup and handle, but it does have those same characteristics, where it hit a high, drifted for several months, hit a new high.
So in my view this is all one big long base here and the stock is now down at a higher low. It kind of gives us a higher base, and I just think there’s room for this stock to run; I would buy it now. Over on Option Market Mentor we put on a bullish trade on Tesla ( NASDAQ:TSLA ) and that’s making money now and I think it’s going to continue to make more money.
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