On March 14, we discussed what could be next for Tesla (TSLA) stock.
Well, since then, I’ve been watching it closely and looking to see if it was reversing or going lower.
I had tipped you all off to the idea that it could break out. And while it took a few weeks, that just occurred.
On March 22, we got a daily confirmation, and on March 25, we got a weekly confirmation as well. I love when a plan comes together.
The short-term structure only requires a daily settlement in order to enter this trade. And the weekly settlement served as an insurance policy that we were on the right track.
Having both helps me sleep well at night!
TLSA then announced on March 28 that it would like to see a stock split so they could offer shareholders a dividend. This, of course, was wildly bullish for the stock.
The Technical Picture
Let’s take a look at what the chart looked like on March 28 for the entry, stop and targets…
The desirable entry was around $995 with a stop at $905 for total risk of less than 10%.
The first target, slightly descending around $1,160, was the ideal place to close the trade and await another setup.
That’s how I would typically play it.
Alternatively, traders could have taken some partial profits and moved your stop to breakeven.
Fast-forward to the April 5 chart, and the first target was reached following another strong up-day.
The second target is ascending and currently located at approximately $1,360. However, how you plan to attack this trade is ultimately up to you.
Most importantly, my hope is that you can see my long-handed analysis approach to the market, my ultra-conservative criteria for entries, exits and trade management and that you’re beginning to see that you don’t need fancy indicators to be a wildly successful trader.
Take the Next Step
If you’d like to learn more about my technical analysis approach, I highly encourage you to check out my premium trading service, The Speciale Report.
This service focuses exclusively on the crude oil markets, so we won’t be trading Tesla there.
However, the technical approach is largely the same. We trade crude oil in the futures, ETF and options markets, all of which give members the opportunity to trade at their comfort level.
That’s the beauty of The Speciale Report’s trade ideas… We accommodate all styles of traders. There’s really something for everyone.
Rules to Live By
“Isn’t it nice to think that tomorrow is a new day with no mistakes in it yet?” L.M. Montgomery
Until next time, I wish you a beautiful and blessed day!
Yours In Trading Success,
Anthony Speciale Jr.
