WTF Chart of the Day: Tesla Motors (TSLA)
By LawrenceDaily chart of Tesla Motors (TSLA) below with STOPD Levels.
Blue lines highlight the year 2012 STOPD levels.
Notice how the breakout above 2013 first quarter high led to. 100% expansion to the upside and paused there for a short while.
Once that is cleared, 200% and then 300% expansion are tagged. First significant reaction happened at 300% mark.
Then 400% expansion stopped the up swing and produced the first pullback more than 25% of the range. That gave us the reference range by end of 2nd quarter. The 2nd quarter range is highlighted in orange.
Because the initial breakout stopped at 300% mark. Double that at 600% is the likely cap for the move for at least 1 full quarter. Notice price has already stopped at the 6X mark.
If TSLA can hold the 400% mark / the 2nd quarter high by end of 3rd quarter, it will attempt to retest the year high before year end.
Just like what I said all the time – it is not really your entries that determine your ability to be profitable. It is whether you know when and where to exit your trades that keeps you profitable. In this case, it is those, who can hold their positions that were bought from any price below $40 and exit above $90 (3X mark), are the ones who made the right decisions.
On chart pattern bias, up channel in place, marked in red, is not a good sign for bulls as it will cap the up swings and absorb the strength. The moment the up channel is broken to the down side, the 3X mark and 2X mark will be tested.
Thanks so much for posting this LC! TSLA reported profitable earnings and stock price gapped up today and hit above 150 near 50% 2nd qtr expansion and up channel resistance area. Quite amazing how these STOPD levels played out. No positions for me but this has been a hot stock to keep an eye on.