Bullish Volume and Momentum Coming in for Tesla TSLA
Thu, Jun 8, 3:51 PM ET, by Corey Rosenbloom
Tesla (TSLA) shares continue to get stronger, especially with today’s bullish upside action above $370.
Let’s step beneath the price and uptrend to see what volume and momentum have to say about the future:
“Stocks which are strong tend to get stronger” and
“Trends – once established – have greater odds of continuing rather than reversing.”
Tesla (TSLA) shares underscore both of these core trading and investing principles.
I’m showing a strong reversal up away from the $200 per share level, resulting in (at least) two bullish retracement swing trading opportunities (like bull flags) that carried price higher while awarding profits to the bulls.
Note for an educational example how volume and momentum rose (strengthened) on each new price high.
This – via Dow Theory and Wyckoff’s teachings – is a sign of confirmation which further suggests higher prices yet to come in the future (as the trend intensifies or continues).
That’s what we saw then and it’s what we’re seeing now.
Don’t rush out at buy the highs just yet – note how pullbacks or retracment strategies are more efficient and limit risk in the event the trend does reverse.
Follow shares on the next pullback and determine if you may want to join the trend in motion.
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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