Low Power Mode. Back to the charge station.TSLA stock is at a crossroad and maybe hard to admit that its lost in direction and headed back down for a recharge. I do see the potential for this stock to rebound if it does drop. Longer term, aside from all negative headlines TSLA is a threat to the old standard traditional car makers, dealers, auto mechanic. Its also a threat to indirect markets such as insurance, law enforcement, legal counseling, utility companies and probably much more. Its no wonder why TSLA is scrutinized heavily. It is such a threat that lazy traditional vehicle manufactures like F, GM, BMW, and others are FINALLY producing copycat EVehicles. But TSLA is thinking way head and if you don't understand why the SCTY deal makes sense, then, your probably still banging your head against the wall holding onto zombie industries. This is the economy of "Creative Destruction", where old labor is replaced by new and younger tech workforce, where some jobs and careers are replaced with technology.
Spreads
Rising wedge, but for now running into supportAs we see some support is coming in from our longer term trend channel as well as the lower Bbands.
So far the last three weeks have provided with the expected sideways action once reaching 50.
Selling calls has been the right strategy so far (51, 52 and 53 calls).
At this support I am covering my short calls, but will hold of selling any put spreads to see how the FOMC decision plays out. I would not be surprised to see no rate hike and crude test some downside targets.
For now, neutral, but getting ready to sell some downside put spreads once we breach the support (if we do)
Change buy from neutral as strong support was found on trendlinePro Long:
- Trend line provided massive support (dark red line)
- High volume at support and during the rally
- future spreads very strong (N16-U16 turned into backwardation)
- If we close positive today 7 MA will cross 20 MA generating buy signal
Contra Long:
- running into resistance on middle Bollinger Band (20 day MA)
I sold the 2900 puts last week as a sideways prediction was put in place and will keep that position and add once I see a pull back into the lower trend line
High - Low Bollinger Bands These work better than the standard Bollinger Bands for setting extreme ranges.
What I use these for is to use an oscillator to find an buy / sell signal then take that to the H L Bollinger bands and mark the spot. Most of the time, you will find that the price does not exceed this spot for the duration (length) of the H L Bollinger bands.
This makes them good for doing Credit Spreads such as Put Vertical Spreads and Call Vertical Spreads. Since the price will normally not exceed the bands at the extreme point, the trader can profit from the time decay and other factors.
X - Is Someone giving money for free?X Broke support and trading below all moving averages.
Next target is around 26
On 12/01 Stock gaped down and then came and retest the gap before going down again and breaking support.
Currently at a soft target from the gaps on End July but looks like we can continue down or come back up, test resistance and continue bearish.