Calls if $TSLA holds 185-186, moves over 189 with strength
Aside from the daily levels, there are 4 technical reasons to lean bullish on TSLA stock right now. Numbers match chart.
1 - When price flipped up from 9 Nov, %K spiked from 4 to 83. This under-20 to over-80 move in 2-3 candles creates a warning signal for more upside. There is no lower gap fill since the 10 Nov candle wick took care of that.
2 - Support line at 187. Notice price was tightly rangebound for most of today, and only broke 187.50-188 at the end of day. If this trade design has merit, price should open over 187 on Thursday or open near close and see buyers fast. If price dips as low as 184 it must spring back over 187 fast.
3 - Between 8-10 Nov, RSI made bullish divergence, then rose over 50. As price rose slightly over the next few days RSI could not get over 65 and then reversed down with this pullback. Of significance is that RSI stayed over 35 this time. If my trade design works, then RSI should move back over 50 and this time, it will probably rise to 67+ as price move higher.
4 - %K has been low for a few sessions already while %D has been stuck in oversold. %D is green and might be ready to round up.
If this design works, you can take a day trade on 5m chart. I suggest a swing trade only because call options are inexpensive right now for 11/25 expiry and if market uptrend continues then price can gap overnight.
Targets for day trade are 193, 196.40, 201, 205 (200ma). For swing trade using 11/25 expiry, I will use 196-198 and 205 as targets.
Stops will depend on when you enter. Lowest risk entry is 18-187 with support 186-185 to hold. Range break entry is a close over 189. If price gaps up and does not retreat at open, then wait for a pullback or for moving averages to catch up to price (look for RSI 50 bounce on 5m).
1 - When price flipped up from 9 Nov, %K spiked from 4 to 83. This under-20 to over-80 move in 2-3 candles creates a warning signal for more upside. There is no lower gap fill since the 10 Nov candle wick took care of that.
2 - Support line at 187. Notice price was tightly rangebound for most of today, and only broke 187.50-188 at the end of day. If this trade design has merit, price should open over 187 on Thursday or open near close and see buyers fast. If price dips as low as 184 it must spring back over 187 fast.
3 - Between 8-10 Nov, RSI made bullish divergence, then rose over 50. As price rose slightly over the next few days RSI could not get over 65 and then reversed down with this pullback. Of significance is that RSI stayed over 35 this time. If my trade design works, then RSI should move back over 50 and this time, it will probably rise to 67+ as price move higher.
4 - %K has been low for a few sessions already while %D has been stuck in oversold. %D is green and might be ready to round up.
If this design works, you can take a day trade on 5m chart. I suggest a swing trade only because call options are inexpensive right now for 11/25 expiry and if market uptrend continues then price can gap overnight.
Targets for day trade are 193, 196.40, 201, 205 (200ma). For swing trade using 11/25 expiry, I will use 196-198 and 205 as targets.
Stops will depend on when you enter. Lowest risk entry is 18-187 with support 186-185 to hold. Range break entry is a close over 189. If price gaps up and does not retreat at open, then wait for a pullback or for moving averages to catch up to price (look for RSI 50 bounce on 5m).
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