Tesla has become the hot topic off wall street these last days, and with good reason as well. As we pointed out earlier the auto manufacturer delivered a promising earning report. With adjusted earnings of $1.63 per share, compared to the estimated loss of $0.24 per share, here. This is signaling the transition for Tesla. Going from losing money, to eventually standing on own legs.
The chart looks quite promising. Last time, we wrote a bounce would be “incredibly bullish” this bounce eventually came and has given the fundament for this recent price increase.
Initially, I predicted a 100% increase, currently, we are up 80%. In the long run, I still stand with my prediction of a new ATH, above 400. For now, you can choose to trade Tesla in two ways. You can hold, and wait for further ROI. This would be the Buffet approach. Or, you can try to trade the trend. This will be my approach.
The chart under is from my previous article. Showcasing my prediction for the future near, and old future of Tesla.
Even if I believe Tesla will increase substantially in the future. I can see a correction at this level appearing. Therefore I am selling half my position at this price level, with a “stop-loss” at 335$. This is the level where I will by back my position at a loss. The main idea is that I can increase my stake by selling here, and adding on a future low, before Tesla´s nest leg upwards towards 400$. I choose to sell half my stake in the off chance Tesla keeps the momentum up and continues climbing. I want some skin in the game.
Summary: My long term target of a new ATH still stands, but for now I can see Tesla slowing down a bit, before their next leg up. Therefore I take the chance to sell part of my position, in hopes I can increase my stake at a cheaper price.