Long

TSLA undervalued relative to Magnificent 7

Updated

Support Case:
I've spotted a reverse head and shoulders indicating a reversal to the upside (bullish) up into the region of 212-206. Additionally there's a zone below the left shoulder at 178 down to 162 where Tesla has bounced from previously. So pretty good support from what I can see.

Bullish Breakout Potential:
I've drawn a symmetrical triangle from the most recent price action starting on February 16th, forming through today the 22nd of February. I'm targeting the 212-206 region for a price on TSLA for this bullish set up to reach. I've bought 255 Strike Calls on TSLA at $0.76 each, looking to sell them back at a higher price.

Let's see how this goes, and happy trading.

* Magnificent 7 comparative analysis. While the rest of them have been doing quite well for the most part, Tesla seems to be the laggard in the pack. While I do think the Magnificent 7 is an AI bubble, with actual results to come in the next 2-5 years from this tech, this seems to be an overinflated exuberance. While being cautious, I'm still playing TSLA for this reason.

Note

Continuing to hold position, waiting for upside move, target moved between 211 and 206. Likely will hold position through Thursday March 14th unless invalidated.

Note

Widened symmetrical triangle boundaries in accordance with updated market action.
Will continue to hold.

Note

Continuing to hold.

Note

Up about 8% on the position so far, continuing to hold.
Breakout in favor of the 206 to 212 region confirmed.

Note

Continuing to hold.

Trade active

Not a rocket ship by any means, but will continue to hold as 198 seems like decent support.

Note

Should have seen this earlier, but a clear triple top in the pricing directly below the area I was targeting.
Now has to hold support and ideally bounce at 186.55 for this to have a chance, but really not looking great currently. Expiration is March 8th, so let's see what happens.
Most likely outcome is I exit at an acceptable loss.

Trade closed: stop reached

Closed at an L.
Not my best trading by any means. Yikes. Honestly this might push through the 182.50 and keep down trending. Bullish case no long present.

evolve-quant

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