Are you a Teslonian? Even if you aren’t, you should look at Tesla (TSLA). Here’s your trade. (March 27, 2017)

by DAN TSLA 
In this video I want to look at Tesla ( NASDAQ:TSLA ), here is why: You can see where I think the stock broke, which is right when it broke down through this trendline. Like a lot of stocks, you can look a some of the optical networking stocks, it is broken and then it just finds this consolidation level, it never really starts to move lower.

So what is up with Tesla ( NASDAQ:TSLA )? Today the stock broke out; it continues Friday’s move on heavier and average volume. Whatever the reason for that is, there is news that they may be able to steal some market share because their Model 3 is really safe. Okay, sure. And so now this is moving higher again. I think if you are a ‘Teslonian’ then you hold this stock, you bought some more today and you are very happy, and that is fine.

The way this stock is looking now on a weekly chart, it has never traded logically anyway with respect to valuation, so just think about it. And if you are sitting here listening to this video thinking, “How stupid I am, because of course it is a great value stock.” No it is not! That doesn’t mean that it is not a great stock for you to own. It just means that this stock has never really traded on fundamentals any more than Amazon ( NASDAQ:AMZN ) has traded on fundamentals.

But with that said, Tesla ( NASDAQ:TSLA ), I bought some today and I haven’t owned Tesla ( NASDAQ:TSLA ) in a long time. But if the stock moves up above 300.00 I would be inclined to be buying some more. But for now this is really just a trade, I have a bunch of calls on it. If the stock starts trading up here to 290.00 I am going to start getting an itchy trigger finger; and the closer that it comes to 300.00 the more I will be inclined to be taking some profits.

But for the time being here is what you need to know: Heavy volume on these down days, look at the big red bars, but the preponderance of high bars is the green stuff. That indicates institutional buying. You want to be long this stock. It is a high momentum stock, it is just starting to get it’s legs back under it again. I think it goes higher from here.

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