Tesla
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TSLA

I am creating this for friends but thinking it might be good to share.

Obviously TSLA has been one of the hottest topic in the market. The decisive down move today is not too surprising to me. After I kept selling covered calls a few times, I cleared my shares at $810 when I saw the price broke the 2nd support line, suggesting my friends either selling the shares or selling more covered calls. I sold some 780 naked puts last week and fortunately it did not exercise. To be honest, I felt it may keep dropping but did not expect a huge red bar today. I'd like to be prepared for the following moves so that I could set up a trading plan.

First of all, the plot explains most of my ideas. TSLA should revisit the last range high before the down trend reverses. It is tricky to define the last resistance-support place before its breakout. Therefore I put three dotted lines there for my trading plan use. I hear ARK started purchasing TSLA today. My plot explains why I think it is too early if we want to hold it for more than one week. The three dotted lines will be my entry references. We will see if the plan works.

Chart PatternsTrend Analysis

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