Tesla Technical Strategies

Hi guys! After Q2 reporting of the EPS, Tesla stock has dropped -8% overnight. However, this might not be the worse case if you guys are bought the stock yesterday.

The Cup and Handle Pattern has been a very long technical analysis used by many traders and investors. The chart below, has the cup, and a forming handle on the right side as texted in white. This strategy has a 95% chance of a sucessful rate in bull market.

For this Cup and Handle Strategy to work, the handle's support need to be retested AND show a bullish candlestick before you can enter a long position. Meaning, if the stock price could maintain above $220 a share, there COULD be a chance of going up in the next few weeks. here is the example of this strategy taken from Equentis.com

In my analysis, I also pulled out my Fibonacci Retracement tool and started my 100.00% level at the lowest point of the Bull Rally at $167.74 a share. Then, I stretched out to place my 0.00% level at the highest point before the pullback, at $271.00 a share.

Pre-Market has showned that the stock price went to $224 a share, which is also entering the BUY IN ZONE of the 38.20% in the Fibonnaci. I am going to enter my long position here and take profit at the -27.00% level.

In this scenario, we can see that the stock could hit $300.00 a share, which is the -27.00% level of the Fibonnaci in the coming weeks, or months. That level is where the real resistance point is at, which is relates back to the high of $299 a share, A year ago.

So.... don't be so blue after all. Stock market is really unpredictable sometimes especially if you are playing stocks before the Earnings..... For myself, I definitely lose a few thousands today. I played the stock before earnings was because I was holding a long call that expires 4 months later. Well! here is my analysis! Stay happy trading!