Accumulating TSLA - Attractive Price for both Longs and Shorts
Although we have broken the long term uptrend mark but we are getting a rare opportunity to pick up shares at a price point where both longs and shorts would find attractive:
1. TSLA is at about the 200 Daily day moving average. The last time TSLA was at this moving average there was the fire incidents. As we recall the 200 day moving average was the support point.
2. Looking at the linear regressions. We are close to the -2 Std Dev from the mean for short proposition (this is where shorts are likely to cover) and at the same time we are at -2 Stdev from the mean uptrend for longs (this is where longs will add to previous positions).
3. The 220 mark is also the 61.8% retracement from the move from 177 to 291.
4. The previous long term up move was initiated at 177 after the last sell off but this leg was started at 214.
5. In a more bearish scenario, the price cross point of -3 Std Dev on both the uptrend and downtrend is 204 (73.4% retracement).
With all this said, cash is king and make sure you have enough cash to keep support your position even if the scenario does not pan out. Keep in mind the institutions are driving the waves and we are just the surfer that needs to catch the wave to ride to shore or get wiped out by the wave!.
Good Luck investing! Cheers!
1. TSLA is at about the 200 Daily day moving average. The last time TSLA was at this moving average there was the fire incidents. As we recall the 200 day moving average was the support point.
2. Looking at the linear regressions. We are close to the -2 Std Dev from the mean for short proposition (this is where shorts are likely to cover) and at the same time we are at -2 Stdev from the mean uptrend for longs (this is where longs will add to previous positions).
3. The 220 mark is also the 61.8% retracement from the move from 177 to 291.
4. The previous long term up move was initiated at 177 after the last sell off but this leg was started at 214.
5. In a more bearish scenario, the price cross point of -3 Std Dev on both the uptrend and downtrend is 204 (73.4% retracement).
With all this said, cash is king and make sure you have enough cash to keep support your position even if the scenario does not pan out. Keep in mind the institutions are driving the waves and we are just the surfer that needs to catch the wave to ride to shore or get wiped out by the wave!.
Good Luck investing! Cheers!
