TSLA setting up a long trade
Updated
TSLA on the 2H chart has been trending up since the earnings in April with minor
corrections along the way including this past week after favorable earnings.
The news of the massive pre-orders of Cybertruck has permeated the trader
and investor community that follows TSLA. On the chart, TSLA broke down
the anchored VWAP bands to settle on the support of the first standard
deviation above the mean VWAP. On the MACD indicator, the lines have crossed
while under the histogram which changed from red negative to green positive.
On the dual time frame RSI both the lower (blue) and higher ( black) are now
showing bullish divergence as the blue line has inflected its descent and
crossed above the black line. I am expecting a swing trade of 2-4 weeks
which could also be entered with a call option striking close to the target.
Overall, I see a long trade here with a stop loss under the VWAP band at 255
and the target at 295 just below the next higher VWAP band. This is about
a profit of $35 for a risk of $5 and so a very acceptable ratio. I will zoom down
to a 15-30 minute time frame to accurately select and entry from a pivot low.
corrections along the way including this past week after favorable earnings.
The news of the massive pre-orders of Cybertruck has permeated the trader
and investor community that follows TSLA. On the chart, TSLA broke down
the anchored VWAP bands to settle on the support of the first standard
deviation above the mean VWAP. On the MACD indicator, the lines have crossed
while under the histogram which changed from red negative to green positive.
On the dual time frame RSI both the lower (blue) and higher ( black) are now
showing bullish divergence as the blue line has inflected its descent and
crossed above the black line. I am expecting a swing trade of 2-4 weeks
which could also be entered with a call option striking close to the target.
Overall, I see a long trade here with a stop loss under the VWAP band at 255
and the target at 295 just below the next higher VWAP band. This is about
a profit of $35 for a risk of $5 and so a very acceptable ratio. I will zoom down
to a 15-30 minute time frame to accurately select and entry from a pivot low.
Trade active
With the anxiety in the markets for the rate hike versus the opposite in Japan and the stagnation in the bond market, accumulation at flat prices in a consolidation allows more trading for volumes to coil until a new continuation
as per Wycoff.
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