Daily Tesla Trade Alert (01/08/24)

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Tesla was down 11% last week, in line with a broad decline in the NASDAQ.

Th 9 period just touched down on the 20-period to end the week. When this happens, I’m looking for a bearish pattern to continue.

Intraday, the Tesla was trading below the VWAP:

This is typically considered a buy signal for institutional buyers. And as they pile in, you could expect the price to ush higher to the VWAP or above it for a time.

So, this is a tricky one today. The 9 SMA/20 SMA crossover is indicating a bearish pattern, but the VWAP signals that the price could go higher. Plus it’s a Monday, which is always more chaotic.

However, the fact that Tesla sold off so hard last week, along with the other big tech names, makes me think that buyers will be trying to get in — at least for the first few periods today.

So, here’s my trade ideas:


Options Contract: 12 JAN 24 242.5 CALL

To Better Trading,

Alex @ Trader’s Alley