Here’s how I’m trading Tesla ($TSLA) – July 12, 2021

by DAN TSLA 
I want to look at Tesla ( NASDAQ: TSLA ) here. I just finished going over this in our premium session along with various other things but I thought I would share this with you, I think this is really important. I like the way Tesla ( NASDAQ: TSLA ) is trading right now. You don’t want to be buying something like this on the way up, that’s just not the way you want to trade. Even though a stock like Tesla ( NASDAQ: TSLA ), a lot of times it will bail you out, but sometimes it won’t.

I do like the way this is trading here because you can see this in relation to the 200-day moving average, right here. It has rebounded off of this many, many times over the last couple of months. The 50-day moving average here, the red line drifting lower. The stock finally rallied up through the 50-day moving average. You can or cannot, it doesn’t matter to me, pay attention to the 100-day moving average, I keep that in for various reasons but it’s really not relevant to our analysis; it is really the 50 and the 200.

The stock is trading decisively above that, today we got a nice move on volume. But what I really like about this is, the way it’s coiling, the way it is trading sideways here for a while. It is just hard for me to envision the next move being lower because there has been so much buying on this. So much buying interest on this, and even up here. So any pullback, I really feel like is going to be met with move buyers. And so in my view, the next move higher is probably going to be here.

I started a small position today, it would have been nicer to start it last Thursday but I didn’t, I don’t have a Wayback machine, I can’t go back and do it. But I took a small position here and if the stock starts breaking out above 700.00 I am going to increase that position size. Anyway, I think this stock is going to work pretty well. It can be volatile, it can beguiling. I would give it about at least 10 or 11 percent of room here. You can see the stock can continue to trade. But as I look at this I see a real healthy period of consolidation here.

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