Tesla Trade Alert (1/23/24)

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After a 53% gain yesterday. let’s see if we can follow it up. Tomorrow is Tesla’s earnings call — all expectations point to them being very lackluster.

Not only that, but the charts are still very much bearish.

For instance, on the daily, you can see a number of bearish signs. For one, the 9-Day is still very below the 20, which is bearish. But also, you see that long wick on yesterday’s candle? That means there was a good amount of buying pressure — people were trying to push the share price up. But it wasn’t enough to overcome the sell-side.

On the intraday chart, you see that the price is below the VWAP midline. So, my thesis today is that at opening the price action will go up for a bit, before ultimately tumbling again.

Trade Idea:

Price Target: $205.50

Options Contract: 26 JAN 24 $205 CALL