NVDA
NVIDIA
-- 128.910 TSLA
Tesla
-- 440.130 MU
Micron Technology
-- 103.900 QUBT
Quantum Computing
-- 25.680 PLTR
Palantir
-- 71.510 
I’m shorting Tesla but I’m not here to hate. I trade based on TA, and I don’t need you to lose money for me to see green. So, I’m sharing the risks around buying this dip.
Again, some bulls will certainly bash me for shorting, but mind you, we’re all here with the same objective of making good trades. This is technical-based price movement predictions and if you don’t like it then you’re trading with emotions.
Before all, let me remind you that $Tesla (TSLA.US)$ is a stock that trades based on fear and greed momentum. A stable, growth stock does not create spikes and such volatility both ways.
1. Confirmation of The Hanging Man Candle
I bought puts 2 days ago because the premarket was gaping up with RSI >90, which could potentially form an exhaustion candle leading to either a bearish engulfing candle or a hanging man.
True that, a hanging man candled was formed at yesterday’s peak. Hanging man candles are often referred to as reliable signs of reversal in an uptrend, especially with confirmation from yesterday’s red candle. A bearish engulfing candle followed after the hanging man, enforcing the pattern.
2. Referencing TSLA’s Historical Price Movements
We need to look at how TSLA previously reacted to long red candles after parabolic runs.
I. Previous ATH - Nov’21
II. Jul’23
III. Jul’24
The first red long candle that enters the chart has repeatedly gestured the start of a reversal. Sometimes the correction is steep but most of the time, it’s a slow burn, with plenty of volatility towards the downside.
And yes, they do eventually fill the gap up, but that’s before a long route down. Unless if, you’re willing to hold and ride through it long term.
3. We Formed A ‘DeathCross’ Pattern on KDJ and RSI Indicators
Many long time traders use these indicators to signal entry and exit points. A Deathcross happens when the short-term price trend has taken a drastic break below longer-tracked price trend which signals a trend change.
Traders with big orders will seek liquidity to exit their positions at this juncture. You may even see slight pump to entice retails to buy, but very often the retailers such as mass traders are trapped as a channel for the big orders to liquidate.
Do you really wan’t to buy at the start of a trend change signal?
4. A Market Rotation Is About To Happen
See how stocks like $NVIDIA (NVDA.US)$ inverses $Tesla (TSLA.US)$ at the market open before the FOMC news kicked in. Check their capital flow for the past week and you’ll see they nearly, perfectly inverse each other. This is hot money movement.
Follow the money, don’t be the means to liquidation. Rotation is happening as we speak and NVDA will snap back very quickly at current oversold levels and that will chip away at TSLA.
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There are other stops to buy right now which are 2x the reward-to-risk ratio. Personally, I’m big into $NVIDIA (NVDA.US)$, $Micron Technology (MU.US)$ and even $Advanced Micro Devices (AMD.US)$.
Lastly, I’m not here to instil fear and drive you to sell. I’m here to instil caution and trade with additional consideration from above.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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xiaoswee : if u know nvidia is going to pump, why not jus long nvda, nth can go wrong with longs on good foundational companies, tsla look v juicy to short yes but its v unpredictable. In terms of trading, be it short or long i think we all hate uncertainty
cnkj OP xiaoswee : Yes I am long NVDA, just bought in MU. I have call options on NVDA and stocks on MU.
xiaoswee cnkj OP : nvda always pump before er, and dump aft. Barring any black swarm events, any industry headwind will cause it to dump, creating plenty of entry points. imo its much more superior ans predictable to trade than tsla
Hans56 : you not shorting Tesla when you are in a call option just tell the truth you are miss the call option just like others miss the opportunity of call option.
cnkj OP Hans56 : Sorry I don’t understand