[8:32am CT] Entered Calls @ $223.27
Full analysis here. Target price: $340.00
Good follow through today with good volume as well. We are now running into 4/3/14 resistance level but I think we could continue higher. Possibly short-term rest/pause might be in-stored before moving higher.
So as I have talked about (on my previous updates) that we possibly be forming a continuation pattern, and it looks like we are forming a Bull Pennant continuation pattern. This pattern has a good probability of breaking higher. If we can close above $233ish with a solid white candle with decent volume, that would be a confirmation of this continuation pattern. I think this week might be a good week for Tesla. More updates later.
Today, $TSLA broke out of this Bull Pennant continuation pattern. I do think this bullish trend will continue. We may get some hiccups here and there but I do think we will get to $260ish level.
So we did have pretty sharp sell-off today, but I am calmly holding my full positions as the trend is still up. The pivot level (red line) still could act as support if we can stay up next few sessions and make sure not to close below this $229.00. If it continues lower I think $220ish could act as support (blue dotted line), and that’s the level where daily 50EMA is residing at this point.
- Uptrend support established
- Cultivation of higher lows and higher highs
- 50EMA held
We have been holding the full positions since about a month ago, and it seems like the uptrend is starting be more defined after a move like this. I think Tesla will do very well next few weeks. If we can take out $240ish, next target $260.
We have discovered the 65mins bullish divergence while the 50EMA was holding on the daily chart back in 7/15 and it gave us further confirmation to stay long on this position.
It has been grinding but for this being a 65mins chart bullish divergence, I have to say it was well played. Let’s look at the daily chart below.
We have been watching daily 50EMA as we’ve perceive that level as possible support area. Buyers protected the 50EMA level and now we are trying to get back up here while cultivating another higher low. If we can have another bullish day tomorrow, I do think we can see higher prices as we are now clearing recent pivot (blue dotted line). ER is tomorrow after close so let’s see how it plays out.
Good volume last Friday and now we are well above the ‘recent pivot’ (blue dotted line). If we can take out $245ish resistance, I believe we can get to $260ish. Still long.
We are seeing lot of momentum to the upside here last several days, and today, we’ve cleared important resistance of $240 with good price action and volume. I do think $260 is imminent and then possibly $290ish though there might be a chance that we come back down to $240ish to retest as new support before going higher. I’ve been sticking with my big picture analysis and that is why I have been holding full positions since 6/17 open and continue to hold calmly.
Here is a daily line-chart perspective, and I think if we can able to stay above $250-$255ish level this week, I do think the trend could continue like it did last February. I’m still targeting $300+ next but it’ll be important to see how we deal with this level rest of the week. If we completely lose this level, there might be a chance we come down to about $240ish to retest that level as new support. Still holding full positions.
[10:23am CT] Closed 70% Call Positions @ $262.67
We held through our positions for almost two months, and this morning, we’ve decided to close 70% of our positions and take the profit. We still do think we can get to about $300ish but we are starting to see some overbought status in the near-term so I do think pullback might be coming but if we can’t hold $250-$255, we may come down to $240ish. But if we can able to hold $250-$255, I think we can have another leg up and that’s why we kept 30% of our remaining positions.
If you check my 8/11 update, we talked about pulling back to $250-$255ish, and looking at the above line chart, it looks like we’ve checked that $250-$255ish level (also that level coinciding with 10EMA) as possible new support (see green arrow), and currently bouncing. If we can have follow thru next few days, I do think Tesla can reach our next target of $290-$300ish rather quickly. We are still holding our remaining call positions since $223.27.
So we’ve been looking at this line chart with 10EMA (check previous updates 8/11 & 8/25), and we held the 10EMA and retested old resistance as new support (see arrows) and bouncing. Definitely a good look for the buyers. If we can keep that gap open (from Friday morning) and hold up here, I do think we can get to $290-$300ish possibly within 2-3 weeks. I am still holding my remaining call positions since $223.27.
We broke out today with good volume closing with 5.35% bullish move. I think we may get 2-3 days of consolidation possibly forming bull pennant or bull flag in the miner term. If we get another sizable gap-up next several days, we may reach $290-$300 much sooner than I originally anticipated and that’s the level where I will be closing all of my positions. Ultimately though, I still do think we can get to $340 by end of the year. I’m still holding my remaining call positions since $223.27.
[1:26pm CT] Remaining Call Positions Closed @ $290.57
[Above chart screened @ 1:26pm CT]
We have decided to close our remaining call positions earlier today @ $290.57. We thought this was great position trading as we held our positions about 3 months ($70 run). I do think $300 might be doable in the short-term and possibly $340 is doable by end of the year. But this is the level we felt comfortable & fully satisfied to take the profit.