Here’s the best way to trade Tesla ($TSLA) (October 29, 2021)
TSLA
I am going back to the well here on Tesla ( NASDAQ: TSLA ). This is something that I have been covering for a while. Truth be told, we already closed out our position on Tesla ( NASDAQ: TSLA ), an active trade, it was a really, really good trade. I have been continuing to cover this, for this reason, I think the stock is going higher.
This is something that I actually learned from John Bollinger about 20-years ago. He said, “You know when you see stock patterns and they do what they are supposed to do, that’s all well and good, that’s great because everybody sees them, and so it’s really a wonderful thing.” And he said, “But when you see a stock pattern that doesn’t work out the way it “should”, when it does something different when a stock doesn’t conform to the pattern.” In other words, it’s a broken pattern, he said, “That’s really good information because it tells you that the stock is a rule breaker. It tells you that the pattern was broken.”
That is really what we have got going here for Tesla ( NASDAQ: TSLA ). I am going to show you in a second, how to read this chart. But if you just look at it here, this was a total breakout here, we know this, on big volume. And then the very next day it ran up so high, almost to 1,100.00, and then fell back down to close near the low. And you say, alright, that’s the end of the story here. It’s been a nice run but now we have got to pull back to earth a little bit. And then it doesn’t do that. The next day it’s just kind of an inside day. And then finally, we get these continuing moves higher.
For me, this is a hard stock to hold. And it’s a hard stock to hold because I really hate to lose money, I do, probably more than most people. I hate to lose money more than I love making money, and that’s the truth, it really is. So I will tend to be a little bit of a weak hand on stuff like this. But I just swapped that to some options and now I am a happy camper. And this is why though, I bought some December options, which is still a little ways to go because I am looking at the weekly chart. Screw the daily chart, I don’t care, it is just going to show a lot of volatility because this is such a high-profile stock and it’s got a lot of stuff going on. But generally speaking, it’s all on the buy side.
And so as I am looking at this stock, if you look at this, I had mentioned 900.00 was a good level. And now I am looking at 1,250.00 as kind of a lead-pipe cinch. If you look at this chart, does anybody really think it is not going to hit 1,250.00? I just think this is going much, much higher. Don’t get the wrong idea, I am not pounding my chest saying, you got to buy Tesla ( NASDAQ: TSLA ), you got to buy Tesla ( NASDAQ: TSLA ), you got to buy Tesla ( NASDAQ: TSLA ). I am just looking at the price pattern. I am just looking at the price pattern and seeing that this is a stock that is under very big accumulation. It’s under very big accumulation. A lot of buyers coming in here this week.
So I would just stay long, I am staying long and stay out of the daily chart. Just look at the weekly chart and you are going to be very happy. You can thank m
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