TESLA: Large Cap Trading like a Penny Stock. Where to Now?
Remember when Tesla was just $180.00 and Wall.St thought it was going to 10.00? Yep that was a prediction by some 'experts'. Now we have seen the stock form a massive shooting star and it has since retraced which was expected.
Originally, Tesla was in a broadening wedge and eventually broke-out. As volatile as it is, the stock is still somewhat 'safe' UNTIL it breaks the secondary channel (if it does).
While it remains incredibly risky to own the stock at these prices outright, it is still a stock that will be one of the more dominant technology, innovation and car manufacturers in the world. In my opinion within the next 3 to 4 years they will strongly compete and 'win' against companies like Uber and Lyft. In contingency, they will also continue to win the EV market relative to other manufacturers.
The key level to watch in the next week will be the 700-710 level. If this range holds, we can expect further upside and potentially another surge and continuation of a trading in the upper range. If we fall below this level within the next week Tesla could trade in the secondary channel.
That being said, in terms of the stock plummeting to below 500.00 or form a massive decay off the shooting star, I put a low risk on. A decay this significant would likely be reserved for an extremely disappointing earnings report which has not happened lately.
The best way to 'play' Tesla in my opinion is investing in FNGU which is a 3x leveraged fund that only has about 10% exposure to the company, but also has exposure to likes of other FANG stocks like Apple, Google and so forth.
For those who want to play the stock directly, wait to see the reaction off the upper trend-line. A bounce to the upside indicates this stock could create a new ATH. And of course, a drop to the downside represents the inverse.
- zSplit
Originally, Tesla was in a broadening wedge and eventually broke-out. As volatile as it is, the stock is still somewhat 'safe' UNTIL it breaks the secondary channel (if it does).
While it remains incredibly risky to own the stock at these prices outright, it is still a stock that will be one of the more dominant technology, innovation and car manufacturers in the world. In my opinion within the next 3 to 4 years they will strongly compete and 'win' against companies like Uber and Lyft. In contingency, they will also continue to win the EV market relative to other manufacturers.
The key level to watch in the next week will be the 700-710 level. If this range holds, we can expect further upside and potentially another surge and continuation of a trading in the upper range. If we fall below this level within the next week Tesla could trade in the secondary channel.
That being said, in terms of the stock plummeting to below 500.00 or form a massive decay off the shooting star, I put a low risk on. A decay this significant would likely be reserved for an extremely disappointing earnings report which has not happened lately.
The best way to 'play' Tesla in my opinion is investing in FNGU which is a 3x leveraged fund that only has about 10% exposure to the company, but also has exposure to likes of other FANG stocks like Apple, Google and so forth.
For those who want to play the stock directly, wait to see the reaction off the upper trend-line. A bounce to the upside indicates this stock could create a new ATH. And of course, a drop to the downside represents the inverse.
- zSplit
