Let’s take one last look at the Tesla ($TSLA) Trade…and a fresh look at Novocure ($NVCR) (November 19, 2020)
TSLA NVCR
A quick look at Tesla ( NASDAQ: TSLA ) here and then I want to go to Novocure ( NASDAQ: NVCR ).
We are looking at Tesla ( NASDAQ: TSLA ) again. When it runs up above this 460.00 area or if I recall correctly, 462.00, that is where we want to buy, which it did and now this thing is up around $500.00. I mentioned yesterday I would stick with the trade and I still would, it kind of depends on what your time frame is. But if you are just looking at the weekly chart this is a stock that, again, is just starting to break out. So I would just say again, just hang in with it; I wouldn’t over trade it, not at all.
Now, if we do Novocure ( NASDAQ: NVCR ), it is kind of a similar looking chart, isn’t it? We’ve got the stock drifting down like this, coming up here like this. What we want to see is lighter volume here, and we are. So why lighter volume? Because it means that nobody really is caring about this stock too much.
It’s important to have the bases form so we have a left side coming down, it looks like it’s kind of forming a basing pattern here. And then we’ve got a sideways drift here; now what we are looking for is the right side of the base to be built. It should be rebounding right off of the 50-day moving average so this is really what I am looking for on this.
Earnings aren’t an issue so I think the way you trade this is, you can buy this stock right here and I would just give it about 7 percent. I would let it go down to, say 118.00, maybe a little bit lower. But you could say I don’t want to sell it unless it goes below 116.67. So this would be your rationale for the stock; this is actually an important low and so the stock is not going to come back below that level.
You could do something like that; set your stop, and then wait for the stock to break out a little bit more before buying more. But then ultimately look for a move to new highs. That’s one way you can trade this stock.
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