Tesla ($TSLA) has broken though our resistance level on volume. Here’s the next part of the trade!! (August 20, 2020)
TSLA JD TSLA
I want to look at Tesla ( NASDAQ: TSLA ). This is a stock that I have covered recently from time to time. And most of the videos have actually been free so hopefully, you’ve been doing okay on this, I am hoping so. But lately, I have been looking at this stock and thinking this stock could go to 2000.00 before the split. Well, here it is and it looks to me, frankly, like it is going to continue to go.
One of my members had said, (I think the tongue was firmly planted in the cheek) “There is a conspiracy theory, Dan, that on the split day he wants it to be 2100.00; because a 5-for-1 split will take the stock to 4020.00”, which is of course his favorite number. Now, I’m a square and I don’t smoke pot, I don’t do drugs at all so I don’t even know what 420 means but I know it’s some kind of a drug reference.
I will tell you exactly what I think about Tesla ( NASDAQ: TSLA ), it is not a stock and it’s not a company, it’s a religion. And I don’t say that in a disparaging way. I am saying when something is a religion you can’t make sense out of it. Look, faith in God, I’m a believer, but faith is belief in the absence of proof and that’s just what religions are and that’s a wonderful thing, right? So with respect to stocks this is the deal, people just love this company. They think Elon Musk is Tony Stark on steroids, stuff like that and maybe they’re correct. I know that the stock is so grossly overvalued that at some point it becomes ridiculous to a point where valuation obviously doesn’t matter.
I am making a point here, there is literally no price at this level, there is literally no price that this stock can go to where people are going to be saying, okay, well now it’s too expensive; because the stock is so stinking expensive as it is. There are really smart people who feel like this is a zero and here it is at 2008.00. So I have 2008 reasons, 2008 ½ reasons why they’re wrong; because the stock price is always right. Musk is, I think he’s like the world’s 4th richest dude, which is, seriously, you can’t argue with that.
This is what I was saying today if the stock runs up to 2000.00 it would almost certainly get a bunch of selling because that is what happens when a stock runs up to an even number like 2000.00. There would be a lot of selling, so that would be predictable, literally predictable. When the stock hit 2000.00, boom, it immediately sold-off. And then it ran through it again here slightly to 2003.00, boom, and it immediately sold-off. This is because people have had the stock for a while and they have always looked at $2000.00 as the area where they are going to sell the stock.
And so my thesis was, the stock is going to come up to 2000.00, sell-off, this we know. But what happens when it ultimately pushes through $2000.00? What does that mean? What that means is that there was so much demand at $2000.00 that all of the supply at $2000.00 was soaked up and there are still buyers there. And you can see here, even though this was kind of right in the middle of the day, this establishes my point. The stock had been trading, basically at kind of drifty volume, just kind of low volume. And then before 3:00 when the stock ultimately breaks out above 2000.00 what happens? Volume spikes up and then the stock, I won’t say it never looks back, but it comes back a few times and then it’s drifting higher.
So this shows us that there is still a lot of demand for this stock even at $2000.00 and the way this stock has run, seriously, I really don’t think 3000.00 is out of the question. I know that sounds silly because it’s another 50 percent run, and let’s just take it 100 points at a time. But again, it the stock is at $2000.00 and it’s got just totally obscene valuation, why is $3000.00 out of the question? It’s literally not. And I’m not a Tesla ( NASDAQ: TSLA ) bull I’m a chart bull.
In other words, I look at this chart and I see something that gave is a really, really strong breakout kind of like that ( NASDAQ: JD ), the same type of deal. And so I’m bullish on Tesla ( NASDAQ: TSLA ) stock right here and I would just say as long as the stock stays above the 8-day moving average, this is a stock that you can be buying.
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