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TSLA Breakdown, Price Targets

TSLA (Tesla Inc.) has broken down below this uptrend line after recently putting in a divergent high (negative divergences). As there has been quite a bit of interest in the stock recently, including this chart & short entry (via put options) posted by @shambo just over a week ago, I figured that I would share my thoughts on the stock, including some price targets. The daily chart below outlines my  likely scenario for the stock with the first target/support level coming up soon around the 327.40ish level, where a reaction is likely if/when that level is reached.

TSLA daily July 5th

TSLA daily July 5th

@shambo also posted booking partial profits on that trade in the trading room today & letting the remaining position ride for now which could prove to be a timely exit as the stock is close to that first target level now. This is an unofficial trade idea & the price targets shown in the chart above are the actual support levels. Typically I set my buy-to-cover limit orders on short trades slightly above the actually support level at which I am expecting a reaction.

 

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2018-01-21T22:00:51+00:00 Jul 5, 2017 1:24pm|Categories: Equity Market Analysis, Unofficial Short Ideas|Tags: |2 Comments

2 Comments

  1. murphydoc July 10, 2017 7:20 pm at 7:20 pm

    Is 286 a potential bottom for TESLA..is it buyable there?

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  2. rsotc July 10, 2017 7:54 pm at 7:54 pm

    Assuming that the daily & 60-minute charts confirm a reversal is likely if/when TSLA gets down to the 287ish level, yes, I think that would be an objective level to go long with a stop somewhat below, ideally on a weekly closing basis as they might try to run it below that level intra-week to run some stops & shake out the first lot of longs that jump in to buy there. If TSLA starts to approach that level, feel free to bump me if I haven’t already posted an update on it.

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