Tesla looking to continue its down trend this Friday.
On the daily chart, the 9-period SMA is still below the 20. The day closed out with a pretty fat candle to the downside, not much of any wick on the top, signaling lack of buyers even fighting for the price.
On the intraday chart, yesterday finished right at the VWAP midline. I read this as a perfect setup for the stock to continue to sell off, since it means at the end of the day that the market makers had reached a price consensus and won’t be trying to even anything out at open.
Trade Idea:
Price Target: $225
Options Contract: 19 JAN 24 225 PUT