Here’s your trade on Tesla ($TSLA) – October 13, 2022
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As you probably know we got a massive bear-crushing rally today. No, it doesn’t make the end of the bear market, but we did get a really nice, you could say, it was a bullish engulfing pattern of a whole bunch of days here. And so my suspicion is we will have a little more upside.
I was mentioning in the premium version today, that typically the 20-day moving average has kind of been resistance here the last few times. Because of this kind of volume, I think we will probably see a little bit higher levels here. Because of this kind of volume, I think we will probably sell a little bit higher levels here.
That’s the S&P ( NYSEARCA: SPY ), I want to talk about Tesla ( NASDAQ: TSLA ). Tesla ( NASDAQ: TSLA ) has been, I will say it, I think the stock goes, ultimately, much lower. I don’t know that for sure, but I think it does. And if this falls below 200.00 it could go appreciable lower.
Well, guess what? It’s not below 200.00, it’s above 200.00 and we are traders here. And so we look at this and see that this was definitely ripe for an oversold bounce. And the level was actually really clear. You saw what happened there, the second time around here, and so you see this stock coming down and down and down.
I have been mentioning this to members for the last couple of days. You have got to wait for this bounce, and here we have it, it’s the bounce, fine, So have I missed the trade? I would say, no. The stock gapped down today and closed relative to the open, it closed almost 6.5 percent higher, but this could still go away.
I would suggest if you are interested in Tesla ( NASDAQ: TSLA ) and you don’t want to buy the car, remember everybody just needs to buy an EV and Mother Earth is going to be very happy. So you can still buy Tesla ( NASDAQ: TSLA ) here and then look to sell it probably right about the time that I would look to be shorting it.
This is what we look for, any kind of a rebound that moves enough to where you say, Alright, this has got to flush out some selling here we definitely have got to get some sellers coming in here. So it would not surprise me to see Tesla ( NASDAQ: TSLA ) come up and possibly even test 250.00, as long as the market gets a little lift.
Everybody, these days is betting against Tesla ( NASDAQ: TSLA ). You see all the shorts. You see all the negative news flow and all that jazz. And when everybody is leaning one way all it takes is a little shift and suddenly the stock goes the other way. So that would be my suggestion for Tesla ( NASDAQ: TSLA ).
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