Tesla stock is in high demand because the company is the only automaker in the Magnificent Seven.
Tesla engages in the design, development, manufacture, and sale of electric vehicles and energy generation and storage systems. The company operates through Automotive and Energy Generation and Storage. The Automotive segment includes the design, development, manufacture, sale, and lease of electric vehicles as well as sales of automotive regulatory credits. The company was founded by Jeffrey B. Straubel, Elon Reeve Musk, Martin Eberhard, and Marc Tarpenning on July 1, 2003, and is headquartered in Austin, TX.
The strategy described is for short-term trading only and is not investment advice. Investments are determined by fundamental analysis and are intended to buy the asset for a minimum of 5 years.
Tactics for Maximizing Your Profit
Identify the trend
On a weekly (and then daily) chart, identify the current trend and what phase it is in. Trend lines are the best way to do this. Also, use moving averages or the MACD indicator to determine the current trend:
- If the trend is upward, look for buying opportunities — wait for the price to pull back and, guided by the indicators, open a position.
- If the trend is downward, look for selling opportunities. The MA crossing from the top to the bottom is best.
Identify support and resistance levels
- Use horizontal support and resistance lines to identify areas where the price may bounce or reverse.
- Look for buying opportunities at support levels and selling opportunities at resistance levels.
It is important to realize that prices can bounce off these levels. At the same time, on high volume, price can easily break them. The volume indicator will be your “best friend” in the moments of analysis. Based on it, you can determine the strength of market participants at a given moment. If the volume is large, the price will break the support/resistance, if the volume is small, it will not break it.
Use technical indicators
- Use indicators such as RSI, Stochastic, or Bollinger Bands to find overbought or oversold conditions.
- Look for buying opportunities when indicators signal oversold.
- Look for selling opportunities when indicators are signaling overbought.
Example
- Current trend: Downward (along the trend line)
- Resistance level: $319
- Support levels: $252, $230
- Indicators: the price is below MA 100, RSI (if used) = 77 (overbought)
Action
- Sell TSLA stock at $319
- Set stop loss above $325
- Close part of the position when price reaches the first support (Target 1).
- Close the entire position when the price reaches the second support (Target 2).
You don’t have to buy the entire stock on MOVO. A position can be opened with $50, and using a multiplier can increase the potential profit up to 50x.
Additional tips
- Keep an eye on news and announcements related to Tesla as they can affect the stock price.
- Use different strategies and indicators to find the one that works best for you. You don’t have to use just MA or RSI — find the best indicators for you, bundle them together, and use them.
- Be disciplined and follow your trading plan. If the price hits a stop or target — exit without hesitation.
