Trades

TESLA - US - Stock

TESLA - US - Stock

Name of asset : TESLA - US

Asset Category: Stock

Time frame: Daily

Risk/Reward: Scenario 1: 11.79 / Scenario 2: 9.22

Entry: Scenario 1: $253.35 / Scenario 2: $330

Stop Loss: Scenario 1: $221.51 / Scenario 2: $300

Take Profit: Scenario 1 $ 2: $628.64

Hey amazing MomsWhoTrade Community,

Today, we're looking at one of the most talked-about stocks, Tesla (TSLA)! This chart is a bit more advanced, but we can break it down easily. It shows a fantastic long-term opportunity with a great risk/reward ratio. Given the current trend in the market (down) I'm waiting for this to come lower. I have two scenarios we can look at:

Scenario One:

  • We continue to move down to the 0.786 Fibonacci level ($253.35). Here, we also have a trend line that acts as a support. We bounce from there, break through the top trend line, make a new higher high, and then come back down to retest the 0.5 Fibonacci level ($330) and have our breakout to over $600.

Scenario Two:

  • We push up from here and break through the top trend line. We make a higher high and then come back down to retest the trend line or the 0.5 Fib ($330) and then go up from there.

Key Levels:

  • Entry 1: Wait for the dip and buy in around $253.40. This is a great level because it lines up with a very strong support line (the 0.786 Fibonacci level) and the bottom trend line.
  • Entry 2: Wait to see what the market does in the next few days. If it goes up from here, wait for the retest on the top trend line around the 0.5 Fib ($330)

Why These Entry Points?

  • FIB Levels: Those special Fibonacci numbers (0.618 and 0.786) are like magnets on a chart, and prices often find strong support there.
  • Trend lines: Both entry points also line up perfectly with the trend lines, making them even stronger support zones.

Safety Net & Goal:

  • Entry 1: The critical safety net is marked at $221.51. If the price drops below this level, the trade idea suggests the pattern is broken and it’s time to exit and your protect capital.
  • Entry 2: Here I would place my stop as under the previous low. For example, if you buy in around $324 then your stop would be around $300.
  • My Goal (Take Profit): This trade is looking for a massive long-term move! The target is the top of that big green box, potentially taking us well above $500!

What is Momentum telling us?:

  • RSI: The indicator at the bottom shows that momentum is currently in the middle ground, which supports waiting for a dip rather than buying now. A dip would bring the RSI down to a better buying spot.
  • Volumes: The volume has been getting lower as the price consolidates in the triangle. This is very normal. What we'd want to see to confirm a breakout to the upside is a big surge in buying volume.
  • Risk vs. Reward: This setup has an incredible Risk/Reward Ratio of 11.76, meaning the potential gains are nearly 12 times larger than the defined potential loss. This is a very attractive ratio for a long-term trade!

Important Reminder: This is not financial advice. Trading involves significant risk, and you could lose money. Always do your own research, understand the risks, and only invest what you're comfortable losing.

Let's keep learning and growing together!

Join 100+ Moms Crushing It Daily.