Tuesday, March 29, 2011

TSLA

Here's a potentially interesting  long trade in TSLA (Tesla Motors).

 A Bullish descending wedge, sets the implied target near $34

 30 min 3C positive divergences in a base building environment.

 Recent 15 min positive divergence leading to higher prices.

The first level of resistance is taken out thus far today, the next level would lift TSLA into stage 2 or mark up where it would have a decent chance of hitting the $34 upside target. Technically this is still a base so there's still volatility issues. You may like the trade here or may want to wait for the $25.50 resistance area to be taken out. In either case, this isn't a quick pop trade, but looks to be more of a longer term trending trade. Currently I'd try to give it as wide a stop as possible if you enter here, a bit under $22.

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