27% profit every 20 days?
This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.
Tesla Inc. (NASDAQ:TSLA) shares are trading higher Wednesday and appear to be breaking above pattern resistance. Holding over this level is key for the price to continue to keep pushing higher. The stock recently saw a fake breakout when it crossed past resistance, but wasn't able to hold above the support level.
Tesla was up 4.22% at $1109.31 at the time of publication.
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Tesla Daily Chart Analysis
- Shares broke out of a pennant pattern in late August and saw a large bullish move following the breakout. Now, shares are consolidating in what technical traders call a falling wedge pattern and now may be breaking out of this pattern. To confirm the breakout, the price will need to hold over this resistance and begin to establish it as an area of support.
- The stock has been trading above the 200-day moving average (blue) and crossed above 50-day moving average (green) Friday. This indicates the sentiment is turning bullish, and each of these moving averages may hold as an area of support in the future.
- The Relative Strength Index (RSI) has been building higher lows since the middle of December 2021 and now sits at 54. This shows there are now slightly more buyers than sellers in the stock for the first time since the beginning of December of last year.
What’s Next For Tesla?
Tesla's push above the pattern resistance is a bullish sign that shows the stock is seeing strength. The first time it crossed above the pattern resistance, it was unable to breakout. Now, the stock is attempting to breakout past pattern resistance for a second time.
Bulls are looking to see this breakout occur with above average volume. This will help confirm that the move is likely to continue, and it is not another fake breakout.
Bears are looking to see the breakout fail and for the stock to fall below the pattern support, possibly indicating a downward trend is starting.
Also Read: Tesla Analyst Hikes Price Target, Says The Company Can 'Make All Other EV Names Obsolete'
Photo: Courtesy of tesla.com
27% profit every 20 days?
This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.