Trading Plan for TSLA: December 10, 2024Key Levels to Watch
1. Resistance Levels:
* $390 (2nd Call Wall): A significant gamma-based resistance zone where market-makers may adjust their hedging activity, potentially capping upside momentum.
* $400 (Next Key Level): Breaking above $390 with strong volume could lead to a rally toward $400, supported by bullish momentum.
2. Support Levels:
* $380 (Gamma Support): Critical support level identified by the GEX indicator. A bounce from here would align with institutional activity.
* $370: If $380 breaks, $370 could be the next target, acting as the secondary gamma-supported level.
Scenarios and Trade Ideas
1. Bullish Scenario:
* Look for a breakout above $390, confirmed by increased volume and bullish MACD/RSI signals.
* Entry Point: $391 with a target of $400 and $410.
* Stop-Loss: Below $389 to minimize risk.
* Rationale: Gamma unwind above $390 could trigger additional upside momentum, supported by the trendline.
2. Bearish Scenario:
* Watch for a breakdown below $380, accompanied by high selling volume and bearish indicators.
* Entry Point: $379 with a target of $370.
* Stop-Loss: Above $382.
* Rationale: Breaking gamma support at $380 could lead to a quick drop toward $370, reflecting market-maker adjustments.
Intraday Plan
1. Morning:
* Monitor the open for directionality. Look for any gap-up or gap-down behavior near $390 or $380 to confirm early momentum.
* Bullish: If price holds above $390 with rising volume, consider a long trade targeting $400.
* Bearish: If price fails to hold $390, short to $380 with tight stops.
2. Midday Consolidation:
* Expect price to hover near key gamma levels ($390 or $380). Scalping opportunities may arise within these zones.
* Use MACD and RSI to confirm entries during consolidation phases.
3. Afternoon Directional Move:
* Watch for potential breakouts or breakdowns from $390 or $380 as traders position for the next session.
* Align trades with GEX indicator levels for precision.
Key Indicators
1. Gamma Exposure (GEX):
* Use $390 and $380 to gauge where institutional hedging may cause reversals or consolidations.
* Anticipate volatility near these levels.
2. Trendlines:
* Confirm bullish or bearish bias based on the price's respect or breach of trendlines.
3. MACD/RSI:
* Use MACD crossovers and RSI readings to validate momentum shifts around gamma zones.
Summary
For tomorrow's trading session, focus on price action near $390 (GEX Gamma key resistance) and $380 (GEX Gamma key support). Leverage gamma-based levels for precision entries and exits, and align with trendline and indicator confirmations for a well-rounded trading strategy. Keep risk management at the forefront and be prepared for high volatility at gamma pivot points.
Disclaimer
This analysis is for informational purposes only and not financial advice. Please consult your financial advisor or conduct your own research before trading.
