Yesterday 343 was a very important level for TSLA. Today's TSLA is trading in the same area.
IF THE STOCK PRICE FALLS AFTER OPENING -
The most volume done yesterday was at 345. So we expect the stock to rally from the 345 area and go higher (especially because good news is out). If the sellers keep stepping down into the 343 area. We will redact our order and continue to assess. The 343 level can be broken today too. Two things were confirmed in yesterday's move. 1. The sellers are quite strongly present in the 352-355 area. This can motivate the buyers to expect a lower price of 333. It is entirely possible that the buyers step in at 333 and not at 343. So, we need strong confirmation on the 343 level, otherwise we will not enter. We will enter at 333.
IF THE STOCK PRICE RISES AFTER OPENING -
If the stock opens strongly and blows past 348 area. We wait for strong confirmation at 355 - 360 area that the stock is going to fall and then we short. If the stock slows down at 348 area, then we can either take a short at 348 or wait for it try and inch higher where we short the stock at 350-352.
IF THE STOCK PRICE FALLS AFTER OPENING -
The most volume done yesterday was at 345. So we expect the stock to rally from the 345 area and go higher (especially because good news is out). If the sellers keep stepping down into the 343 area. We will redact our order and continue to assess. The 343 level can be broken today too. Two things were confirmed in yesterday's move. 1. The sellers are quite strongly present in the 352-355 area. This can motivate the buyers to expect a lower price of 333. It is entirely possible that the buyers step in at 333 and not at 343. So, we need strong confirmation on the 343 level, otherwise we will not enter. We will enter at 333.
IF THE STOCK PRICE RISES AFTER OPENING -
If the stock opens strongly and blows past 348 area. We wait for strong confirmation at 355 - 360 area that the stock is going to fall and then we short. If the stock slows down at 348 area, then we can either take a short at 348 or wait for it try and inch higher where we short the stock at 350-352.
Note
POST TRADING - I made two mistakes today. I did not take the consolidation into consideration and I didn't give enough breathing room to the consolidation prices.
Important things I learned today -
1. The more obvious a level becomes, the higher chances of consolidation (because everyone else is paying attention to it too). Take that into consideration in your future trades.
2. Be less rigid with obvious levels. If the previous level of interest was 343, then it give breathing room from 345 - 341. Consolidation works different from the momentum.
Emad Arshad Alam
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Emad Arshad Alam
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.