The Ultimate Tesla Long -> Short Swing Setup
Zaktualizowano
Based on initial angles and entirely too many hours spent, I think Tesla is going to be a great name to swing trade into September (*experience trading Tesla advised).
If you consider the first initial wave up into February of 2020 impulsive, then it is Wave 1, not Wave A. Under this assumption, there appears to be a running correction 2-wave, followed by a 3.618 extension Wave 3 that stops at the triple-tippy-top ATH. Logically, and somewhat obvious visually, the chart leads out of the triple top third and into what must be a 4th wave flat/triangle, which lasts until late May.
And finally, some light at the end of this slugfest brings us to our current pattern, a mild (for Tesla) terminal 5th wave to complete the up-series. I'd estimate that we're in the middle of the fourth wave of said terminal, with a potential C-leg down to 675ish to start the week, followed swiftly by the final fifth wave of this uptrend to complete the impulsive 2-3 year sequence.
My fifth of fifth target high is a pretty tight range between 730-750. A few price numbers square out perfectly with time, in terms of calendar days, depending on which bar you start the count on. Moreover, since the third wave was so extended, this terminal impulse should be fairly similar in price to the assumed Wave I, as discussed above. So whether you use Elliott waves, a derivative wave system, Gann methods, or even basic geometric angles, the ending is, in my opinion, expected to swing down somewhere in the mid-700s, and that it should happen either this week, next week, or the following, in order of most to least likely.
This setup is about as good as it gets for stock option swing traders. Tesla will be volatile, which means opportunity will present itself in some way, shape, or form for at least several days in a row. My plan is to start scalping long ATM calls under 685, with a stop-buy order to take a speculative put position under 670. If the Nasdaq (which closed naht-so-great) on Friday, capitulates on Monday's open without a bounce before 11 am, I would steer clear of this trade, and any other involving buying equity long.
This trade will be on if Tesla catches a strong bid around 675/680 for a pretty violent bounce and break of 690 before lunchtime. Such a move on either Monday or Tuesday would fit the billing for this trade, and you can be pretty confident that the stock will continue to bull higher into the mid-700s for a pretty stellar profit.
Yet, the fun only begins with a ten-bag swing up. The wonderful thing about getting waves right at the end is that you can be damned sure of the subsequent selloff being immediate and violent enough downward whereby you can ten-bag your ten-bag if you pyramid the profits you made from the calls just a few minutes beforehand.
After you've had enough return for a lifetime, you can follow the choppy trend into 2022, as depicted above. I wouldn't though; not until the next impulsive breakout, at least.
I love this stock and hope this ending fits the absurd run it's had to date.
-PigolaTesla
TSLA
NIO
DRIV
NDX
CURRENCYCOM:US100
IXIC
If you consider the first initial wave up into February of 2020 impulsive, then it is Wave 1, not Wave A. Under this assumption, there appears to be a running correction 2-wave, followed by a 3.618 extension Wave 3 that stops at the triple-tippy-top ATH. Logically, and somewhat obvious visually, the chart leads out of the triple top third and into what must be a 4th wave flat/triangle, which lasts until late May.
And finally, some light at the end of this slugfest brings us to our current pattern, a mild (for Tesla) terminal 5th wave to complete the up-series. I'd estimate that we're in the middle of the fourth wave of said terminal, with a potential C-leg down to 675ish to start the week, followed swiftly by the final fifth wave of this uptrend to complete the impulsive 2-3 year sequence.
My fifth of fifth target high is a pretty tight range between 730-750. A few price numbers square out perfectly with time, in terms of calendar days, depending on which bar you start the count on. Moreover, since the third wave was so extended, this terminal impulse should be fairly similar in price to the assumed Wave I, as discussed above. So whether you use Elliott waves, a derivative wave system, Gann methods, or even basic geometric angles, the ending is, in my opinion, expected to swing down somewhere in the mid-700s, and that it should happen either this week, next week, or the following, in order of most to least likely.
This setup is about as good as it gets for stock option swing traders. Tesla will be volatile, which means opportunity will present itself in some way, shape, or form for at least several days in a row. My plan is to start scalping long ATM calls under 685, with a stop-buy order to take a speculative put position under 670. If the Nasdaq (which closed naht-so-great) on Friday, capitulates on Monday's open without a bounce before 11 am, I would steer clear of this trade, and any other involving buying equity long.
This trade will be on if Tesla catches a strong bid around 675/680 for a pretty violent bounce and break of 690 before lunchtime. Such a move on either Monday or Tuesday would fit the billing for this trade, and you can be pretty confident that the stock will continue to bull higher into the mid-700s for a pretty stellar profit.
Yet, the fun only begins with a ten-bag swing up. The wonderful thing about getting waves right at the end is that you can be damned sure of the subsequent selloff being immediate and violent enough downward whereby you can ten-bag your ten-bag if you pyramid the profits you made from the calls just a few minutes beforehand.
After you've had enough return for a lifetime, you can follow the choppy trend into 2022, as depicted above. I wouldn't though; not until the next impulsive breakout, at least.
I love this stock and hope this ending fits the absurd run it's had to date.
-PigolaTesla
TSLANIODRIVNDXCURRENCYCOM:US100
IXICZlecenie aktywne
Flipping to put side now.Zlecenie aktywne
Might be seeing this wrong, but looks like a major reversal in Nasdaq is starting now.. I'm long puts in TSLA and QQQ.Zlecenie aktywne
if youve been following this, apologize for the no-update. wasnt a clear shot up until now but id think about entering a put position for next week with a 715 strike.
so far the idea is more or less right on target, which should give confidence in taking the put side into the afternoon and over the weekend potentially.
Zlecenie aktywne
Entering puts again here.Not a recommendation, just a fact.
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