In one of my ideas, I shared a view on TSLA and its' fundamentals. That time, I stated that Long Put would be an interesting idea after a bearish pattern or a volume spike. Later than I said that I took a short position with a narrow stop, which was triggered quite fast. This time, I believe we may have another shorting opportunity.
Before I continue, I need to disclose the fact that I have a short position in TSLA stock. As always, please note that this analysis is my point of view, and trading is a risky activity. You are the only responsible for your trading actions. Now, with disclaimers being said, let's take a look at the trade.
Yesterday, the pre-market session was accompanied by a volume spike, and the overall growth was more than 10%. On a 15-minutes chart IB volume (please note that different brokers may show you different volume) was more than 2 million stocks. A typical turnover for this time and timeframe is less than 1 million. Because of the volume spike, I took a short position at $1760 with a narrow stop at $1803.
Today, we can shift to a longer-term view. On a log scale, the price formed something in between dark cloud cover and bearish counterattack candlestick patterns near the upper boundary of the channel. At the same time, we saw a volume spike, which, however, wasn't that strong - the overall number of traded stocks was slightly below 40 million. Still, I believe it may be a good indication for a mid-term short position.
Please note that a short position in such a volatile and trending market should be managed carefully. I preferred long put in my previous idea, but because of the high volatility, the premium is just too high to be justified. If you take a short position, be sure to place a stop and use any type of trailings.
Before I continue, I need to disclose the fact that I have a short position in TSLA stock. As always, please note that this analysis is my point of view, and trading is a risky activity. You are the only responsible for your trading actions. Now, with disclaimers being said, let's take a look at the trade.
Yesterday, the pre-market session was accompanied by a volume spike, and the overall growth was more than 10%. On a 15-minutes chart IB volume (please note that different brokers may show you different volume) was more than 2 million stocks. A typical turnover for this time and timeframe is less than 1 million. Because of the volume spike, I took a short position at $1760 with a narrow stop at $1803.
Today, we can shift to a longer-term view. On a log scale, the price formed something in between dark cloud cover and bearish counterattack candlestick patterns near the upper boundary of the channel. At the same time, we saw a volume spike, which, however, wasn't that strong - the overall number of traded stocks was slightly below 40 million. Still, I believe it may be a good indication for a mid-term short position.
Please note that a short position in such a volatile and trending market should be managed carefully. I preferred long put in my previous idea, but because of the high volatility, the premium is just too high to be justified. If you take a short position, be sure to place a stop and use any type of trailings.
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