1st Buy Alert on December 13, 2016 @ $199.55
2nd Buy Alert on December 20, 2016 @ $207.90
3rd Buy Alert on April 4, 2017 @ $302.03
April 4th - 3rd Buy Alert
BotTrigger Trade Alert: $TSLA bought back @ $302.03 a starting allocation. So we are adding this one back to our long positions. We originally bought this at $195.55 & then sold early @ the $269 area. Although we would have loved to have never sold, we expected some near term bearish action which did end up taking the stock down to $240 area. That has all since been reversed and bullish momentum has clearly taking over. Now TSLA is at an all time new high. Here’s the thing though….this is usually the start of a whole new wave higher. Not just an incremental new high, but another entire rally that has the potential to take TSLA well above $400 by years end. In fact, the text book target in this breakout is roughly $150 points higher. I know it feels like that’s a tall order, but picture it like this….TSLA is breaking out of a giant 3 year-long consolidation / darvas box. After 3 years of ping-pong up & down within this box, we have TSLA now trading above this for the very first time. It’s like being caged for 3 years and the doors open…what happens? We see a whole new influx of euphoria come back into the stock. There are no losers up here as everyone who has bought TSLA is nearly in a winning trade....that tends to mean that there is little resistance of sellers.
However, just because a stock makes a new high does not promise a new rally for higher. The probability is there, yes, but in order for this to be a confirmed breakout we need to see RSI values on the weekly chart exceed 73.39. This value point was the weekly high RSI of the week of February 17. The stock can only begin a new leg higher if RSI on the weekly is creeping higher in value. There is no way you will see a leg higher here if RSI is flat to down. It just doesn’t happen. An increase in RSI is the predominate, commensurate earmarking of stock that is en route to beginning the next wave/leg higher. Incremental new highs are one thing, but higher RSI will ensure that this is not a fake-out attempt. So far this looks to be very much a real-deal breakout. We are voting long with a 5% allocation right here. We will also be modeling for a higher yielding call-spread that we can leverage once we see a meaningful pullback on TSLA. For now we’re buying the common right here.
December 20, 2016 : TSLA 2nd Buy Alert
BotTrigger Trade Alert: $TSLA Bought an additional 5% @ $207.90 bringing our total allocation now to 10%. Our entry of $199.95 on Dec 20 is working well from the breakout zone. So we are adding here. Our goal is to reach about 15% on TSLA, so we'll leave room for another buy alert along the way. Evidence suggest that bottom was in on this name and will be one of the strongest peformers going into 2017. Take a look at both this monthly & daily chart. Monthly you can see a triple bottom with an intra-year very strong bullish hammer that occurred from Feb to April. That's a 2 month long bullish hammer that was cultivated. The following rest of the year was essentially a consolidation & retest follow-thru that has held. We will be looking to add further to this long on the next pullback.
December 13, 2016 : TSLA 1st Buy Alert
BotTrigger Trade Alert: $TSLA bought @ $199.55 for a 5% starting allocation. We will increase this as it confirms our thesis for higher. We have the beginnings of a potential trend change as Tesla attempts to take out the $200 mark. What's more this is happening with several bullish confluences underway. 1) We have a break above 1 of the major descending trendlines occurring on decent volume. 2) Tesla has now reclaimed the 21day & 50day moving averages & we're now getting a positive slope on the 21 day as it looks to get ready to cross above the 50. That's all positive, & lastly 3) We have a double bottom "W" formation breakout from the retest of the lows. It's not a big W formation, but it is there. We expect that Tesla could headfake a bit here since it's been so troubled for so long, either way we think bottoming formation is still very much in process & that this could be on the precipice of a larger move heading into 2017. We want to be involved for that.