Here’s your trade on Tesla ($TSLA) – October 23, 2024
Dan here at StockMarketMentor.com. I want to talk about Tesla ( NASDAQ: TSLA ) today.
I haven’t traded this stock in a long time, it’s been really, really sloppy and I’ve been too busy to day trade it, which is about the best way to trade this stock. This is an after-hours thing, this is where the stock was, it was down a bit.
They come out and report earnings. It turns out they’re going to be releasing more affordable models, at least they’re going into production in the first half of next year. And by the way, time flies, that’s not too far from now. They beat on margins because they’ve got a lower cost of goods even with the Cybertruck ramp and lower prices, they’ve been dropping prices.
There are other issues, they’ve got the regulatory credit revenues, which could be ending soon, and that increases their margins. And so basically, for the most part, it’s all good, and they’re still at a point where they’re beating the snot out of these other EV manufacturers, irrespective of what everybody seems to think about Musk’s politics and stuff.
When it gets right down to it, most people, except the lunatic fringe, you’re going to buy what you want to buy. We have a Tesla ( NASDAQ: TSLA ) and we love it, well, my wife loves it. I don’t because I never drive it, so it’s confusing to me, but she loves her Model X, it’s an acquired taste.
There’s definitely a market for this. But this is the thing, I’m looking at the weekly chart and I like this better because it’s showing a very, very long base going back years. It’s pretty volatile, pretty choppy if you consider the high was here, and the low was here. We’re talking over 50 percent retracement, but it’s starting to tighten up here, and I like that.
The stock, this $240.00, I’ll take it back to here, it was actually down to here. So tomorrow, when we’ve got this incorporated into the price, we could see more upside. We could see more upside in this.
And so what I’d suggest doing tomorrow is, getting yourself into a multi-window timeframe here. You can use the daily chart just for a frame of reference, I typically use an hour, but even go down to 30 minutes, and then 15 minutes, and even for the first couple minutes of trading, even go down to the 1-minute chart just to see what’s happening.
The stock is going to gap up tomorrow, and you want to see if there are sellers that are selling into the gap. If the stock is up more than 10 percent tomorrow, it’s up 9.8 percent now, if it’s up more than 10 percent tomorrow, that is definitely a risky stock to be buying. It might even turn into a good short on a very short-term basis.
The idea is, that you want to be watching the opening to see how the stock behaves during the first, say, 5 minutes of trading. If it’s above its opening print, then you definitely want to be long. If you’re shorted the stock but it’s above the opening print, you’re wrong, just admit it and move on. It’s going to be for aggressive traders, but that’s the way that I would trade it.
By the way, don’t forget to look at pivot points, you definitely need to look at the volume-weighted average price, but all that stuff is for another day, this is more what it looks like.
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