Simple trade set-up. I am looking at the 618 level to enter a buy - anywhere between 260 -280 per share (near gap as well).
My stop loss on this stock is 0 (0 is a stop loss, it does not mean you do not have one! Many people say they do not trade with stops. Well that simply means your stop is not determined and you do not have your strategy fully understood.) Risk: I am willing to lose 10% of my capital if this company goes bankrupt (stock goes to 0).
I am willing to experience a drawdown of 5% on my capital if the stock gets cut in half. While possible, it is relatively unlikely from the $260 level. I see $155 as the worst case scenario (a flash crash could take Tesla to this level, or some horrible earnings quarter after quarter). I have buy limits sitting at $160 in case a flash crash occurs. Those of you that traded on May 6th 2010 would understand where I am coming from. Those that haven't, I suggest you back-test that trading day. You could also take a look at major losing days like August 24th or 25th (can't remember) 2015. Getting stock really cheap has a lot to do with being many steps ahead of the game.
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Critical level broken today. I am long from 339
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I am still long. It looks like a tight continuation formation is coming.
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Haven't updated on this for a while. Have not been involved since mid 300s. Tesla is now in the buy zone. Looking to start scaling in slowly.
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Longs got filled at 260. When price reached 255 everyone was talking about Tesla going to under. I have one thing to say to that. Price action is king. The rest is bs
@c1234, Good catch thus far! I went lightly long there as well.
abundance28
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hi, great analysis. in what timeframe do you expect the tp around 500?
Lanmar
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@abundance28, Hey, thank you. If you're asking this question because you're thinking of buying a call option the answer would be March 2018, May 2018 the latest. I obviously have no idea when it'll hit 500, but if I'm forced to forecast timing... that would be it (assuming it breaks its all time high). ;)