4 Trade Ideas for Tesla: Bonus Idea

Here is your Bonus Idea with links to the full Top Ten:

Tesla, $TSLA, comes into the week at resistance and just under the 200 day SMA. This is at the top of a range between that 200 day SMA and the 88.6% retracement of the run higher from August 2024 to the top in December. The RSI is rising into the bullish zone on this move with the MACD crossed up and about to turn positive. There is resistance at 288 and 300 then 310 and 330 before 346 and 360. Support lower is at 283 and 277 then 273. Short interest is low at 2.9%. The stock does not pay a dividend.

The company is expected to report earnings next on July 21st. The May options chain has big open interest on the put side at 300 then every $10 strike lower down to 250. On the call side it is biggest at 260 then 300. The June chain has biggest open interest at the 300 then 250 and 240 put strikes and at 300 then 260 on the call side. The July chain has big open interest at the 300 put then it builds from 270 to a peak at 240. On the call side it is biggest at 300. Finally, the August chain has open interest spread from 340 to below 230 on the put side but large and focused at 290 on the call side.

Tesla, Ticker: $TSLA

Trade Idea 1: Buy the stock on a move over 288 with a stop at 276.

Trade Idea 2: Buy the stock on a move over 288 and add a June 280/250 Put Spread ($$11.95) while selling the June 330 Calls ($12.60).

Trade Idea 3: Buy the June/July 300 Call Calendar ($6.95) while selling the June 225 Puts ($6.70).

Trade Idea 4: Buy the August 220/290/330 Call Spread Risk Reversal ($2.25).

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After reviewing over 1,000 charts, I have found some good setups for the week. These were selected and should be viewed in the context of the broad Market Macro picture reviewed Friday that saw with just 3 trading days left in April, equity markets showed signs that the bottom might be in for this correction.

Elsewhere look for Gold to continue to digest its historic move higher while Crude Oil consolidates a possible new downtrend under support. The US Dollar Index sets up for a reversal to the upside while US Treasuries consolidate the downtrend. The Shanghai Composite looks to continue to consolidate in a tight range while Emerging Markets are poised for more upside in broad consolidation.

The Volatility Index looks to remain elevated but moving lower making the path easier for equity markets to the upside. Their charts show signs of a reversal on both timeframes. On the shorter timeframe the IWM, the QQQ and the SPY are breaking short term resistance. On the longer timeframe are printed large engulfing candles over key price levels. Use this information as you prepare for the coming week and trad’em well.

If you like what you see above sign up for deeper analysis and trading strategy by using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits page.

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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