20-Year Pro Trader Reveals His "MoneyLine"
Ditch your indicators and use the "MoneyLine." A simple line tells you when to buy and sell without the guesswork. It’s a line on a chart that’s helped Nic Chahine win 83% of his options buys. Here's how he does it.
The company: Tesla Motors, Inc.
Ticker Symbol: (NASDAQ: TSLA)
Sector: Consumer Goods
Industry: Automakers Manufacturers
Tesla Motors, Inc. designs, develops, manufactures, and sells electric vehicles and electric vehicle powertrain components. The company also provides services for the development of electric powertrain systems and components, and sells electric powertrain components to other automotive manufacturers. It markets and sells its vehicles through Tesla stores, as well as over the Internet.
As of October 3, 2013, the company operated a network of 42 stores and galleries in the United States and Canada. Tesla Motors, Inc. was founded in 2003 and is headquartered in Palo Alto, California.
Please take a look at the 1-year chart of TSLA below with my added notations:
From October through the beginning of November TSLA had been declining within a down sloping channel. This could have simply been a pullback after a nice run up, but breaking through the bottom of the channel implied lower prices were coming, and they did. You can also see how the previous channel support became new resistance in the beginning of November rally.
TSLA's downtrend is still in force. The first sign of life would be if the stock can break back into its channel, which would currently require a move above $140. The next step would be to then break through the previous channel resistance, which is approaching $165.
Tesla isn't set to release earnings again until February 17, 2014.
If you like this article, don't forget to check out my previous Five Star Stock Watch articles on Facebook (Nasdaq: FB) and Apple (Nasdaq: AAPL)!!
No matter what your strategy, or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key!
20-Year Pro Trader Reveals His "MoneyLine"
Ditch your indicators and use the "MoneyLine." A simple line tells you when to buy and sell without the guesswork. It’s a line on a chart that’s helped Nic Chahine win 83% of his options buys. Here's how he does it.
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