Driving to Profits Trading TSLA

You likely know that I track TSLA pretty frequently. This is probably my 13th article on TSLA for TraderPlanet over the last 4 years, maybe even more. Regardless, below are some facts and some of my opinions regarding the technical prowess of this electric stock. 

Facts. 

  1. The 200 simple moving average on a weekly is $197.65 - TSLA’s stock price is currently above that price. 
  2. TSLA broke the 200 SMA on a weekly briefly before (back in February 2016) before it had a massive bullish move. (This time could be similar [is my opinion.])
  3. The 100 SMA on a weekly chart is $220.10 (which TSLA’s stock price is below. 
  4. The 200 SMA on a daily chart is $214.56, which TSLA is below. 
  5. The 100 SMA on a daily chart is $202.62, which TSLA is above. 
  6. TSLA is above the 10,20 and 50 exponential moving averages on both the weekly and daily charts. 

My opinions: 

  1. It really seems TSLA has bounced nicely off the $181.75 before in the past a few times. 
  2. It likely appears TSLA is doing just that, once again. 
  3. On the daily chart TSLA looks like it has formed a strong double bottom chart pattern, with the neck line being at approximately $197
  4. In my viewpoint, I would say TSLA is in a large channel between $181.75 and $280.
  5. There likely will be some slight slowdown on TSLA as that $215 - $220 ranges from the longer term averages and possibly the longer retest of that double bottom neckline, but traveling into 2017, my outlook for the first 2 quarters will be bullish to neutral on TSLA. 

My weekly chart is below. 

 

TSLA_2016-12-26_at_8.19.53_PM.jpg

 

 

I didn’t JUST go bullish on TSLA by the way. Check out my video from 2 weeks ago (yes, you read that right) when I was mentioning about getting into weekly calls on TSLA. Safe to say, they worked well. 

 

Thanks for  reading!! You rock!!

Jerremy Alexander Newsome is a full-time trader and the CEO and co-founder of Real Life Trading - a community of innovative, inspiring, and driven people from all around the world. 

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