A Strong Four Day Rally to New Highs for Tesla TSLA
Tue, May 30, 3:11 PM ET, by Corey Rosenbloom
Tesla (TSLA) shares surged to fresh new all-time highs today above the $330 per share level.
In fact, the last four days have been strong bullish up-days in the context of an ongoing strong uptrend.
Here’s the development and what to expect next:
At Afraid to Trade, our core swing trading principle is that “stocks that are currently strong tend to get stronger.”
Tesla (TSLA) underscores this principle and gives us opportunities to profit from simple retracement or even breakout strategies as long as the uptrend continues (and the stock keeps getting stronger).
In the short-term Daily Chart above, we see a Rounded Reversal on Positive Divergences set the stage for a sustained bullish breakout and rally through 2017.
A March Pullback to the rising 50 EMA – and then a “bull flag” breakout – was the last major swing trade victory in this ongoing bull rally.
The last smaller pullbacks too price also to the rising 50 day EMA and the lower Bollinger Band, similarly setting up an aggressive though short-term pullback trade.
Continue following this stock and note what’s occurred after each successful rally and pay close attention to what happens at the $340 per share target price.
This stock – like any in an uptrend – remains bullish unless it breaks under the rising 50 day EMA.
Follow along with members of the Afraid to Trade Premium Membership for real-time updates and additional trade planning.
Corey Rosenbloom, CMT
Afraid to Trade.com
Follow Corey on Twitter: http://twitter.com/afraidtotrade
Corey's book The Complete Trading Course (Wiley Finance) is now available along with the newly released Profiting from the Life Cycle of a Stock Trend presentation (also from Wiley).”
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