Tesla - what is the plan for next week?
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Hello guys it has been a while. Today I wanted to share a little about my plans and strategies for next week before Tesla joins S&P500.
So from what we see from the volume in the daily chart Tesla is heavily overbought which means a strong pullback down to around 500-460 levels for a support could be a possible scenario but is not a necessary thing that must happen as can be read from the explanation in my previous post that you can check on my profile.
In the hourly chart i drew two trendlines I saw and if the stock follows these two lines we could probably see a high $840 per share price target being reached before the pullback. I would say that based on the news of Tesla selling 5 billion dollars worth of stocks to be bought by the S&P500 to include them starting 21 Dec , next week between 14-18 will be a huge surge upwards before a sharp selloff which will probably indicate a strong sell because then it would be way above the trendlines that I have drawn and therafter lead to probably 2 weeks of downwardsmovement. I would suggest selling 16 Dec as that would be exactly 1 month since the announcement of Tesla joining the well known index. This is due to the fact that when Tesla was going to do a 5-1 split in August the stock whent up all for exactly 1 month (1 - 31 Aug?) which could be the top of the bullrun.
After the inclusion on 21 Dec I would wait to make my next move. I would wait to short Tesla as it is never a good idea to short a stock well known to only continue to go upwards in the longterm but if you want to short Tesla I would advise not to do it with alot of money as we might find a support way earlier than 500-460 (but I doubt it).
Do not take this for financial advice, this is all but speculation
Please comment any thoughts you may have!
So from what we see from the volume in the daily chart Tesla is heavily overbought which means a strong pullback down to around 500-460 levels for a support could be a possible scenario but is not a necessary thing that must happen as can be read from the explanation in my previous post that you can check on my profile.
In the hourly chart i drew two trendlines I saw and if the stock follows these two lines we could probably see a high $840 per share price target being reached before the pullback. I would say that based on the news of Tesla selling 5 billion dollars worth of stocks to be bought by the S&P500 to include them starting 21 Dec , next week between 14-18 will be a huge surge upwards before a sharp selloff which will probably indicate a strong sell because then it would be way above the trendlines that I have drawn and therafter lead to probably 2 weeks of downwardsmovement. I would suggest selling 16 Dec as that would be exactly 1 month since the announcement of Tesla joining the well known index. This is due to the fact that when Tesla was going to do a 5-1 split in August the stock whent up all for exactly 1 month (1 - 31 Aug?) which could be the top of the bullrun.
After the inclusion on 21 Dec I would wait to make my next move. I would wait to short Tesla as it is never a good idea to short a stock well known to only continue to go upwards in the longterm but if you want to short Tesla I would advise not to do it with alot of money as we might find a support way earlier than 500-460 (but I doubt it).
Do not take this for financial advice, this is all but speculation
Please comment any thoughts you may have!
Note
Tesla has gone down substantially and according to historical data. This is to be expected when a company joins S&P500. I am currently down 20k but am buying down my position so that when it goes up. I will make 100% or more of my portfolio in 1-2 weeks. Do not fear this downwards movement, just buy more and sell when it is roughly around or above 700.Note
Seems like I was right and now im up 5k. The volume is looking to go up way more so expect Tesla to go above 700 levels within the coming week.
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