Should I buy shares of Tesla now?

Tesla, Inc (TSLA) has already executed the announced five to one stock split aimed at making ownership more accessible to traders, investors and obviously Tesla employees.

With Tesla split, the stock will be more accessible to traders. Tesla shares will trade around $300 per share once the split is completed, rather than the current $1,600 as per 13th August 2020. The stock could get even cheaper if Tesla pulls back to the strong monthly demand imbalance around $142 per share. Take a look at Tesla TSLA monthly timeframe analysis and forecast below for more details.

Tesla stock forecast 2020

As expected and forecasted in previous Should I buy Tesla Stock in 2020? posted last 25th March 2020, Tesla Inc (NASDAQ) reacted very strongly to the super-strong monthly demand imbalance and it’s been rallying since and after the five to one split, breaking all-time highs again.

You can buy shares of Tesla stock but now it’s not a good idea because we are expecting a correction. Using a high probability stock trading strategy is critical to succeed in trading. You can use intraday and short-term stock strategies and option strategies to trade Tesla on the way down to the strong imbalance shown in the monthly timeframe attached.

Tesla TSLA forecast 2020

TSLA supply and demand imbalances

As supply and demand traders, we do not need to pay attention to the news, fundamentals or any earnings reports. Once a big timeframe imbalance has gained control, earnings do just the opposite and react strongly to those imbalances. Why is it that you see positive earnings and then the underlying stock drops like a rock, or a negative earnings announcement and the stock rallies like a rocket out of control? You are probably missing the fact that there are big imbalances gaining control.

Unless you are doing very short term trading and scalping, you should not worry about fundamentals or earnings announcements on Tesla stock.

You can use these imbalances to plan your trades in lower timeframes. Trading is just waiting for the right trigger points and scenarios to present themselves, this game has got a name and it’s called the waiting game. We need to patiently wait for the correct scenarios and setups to happen and wait for the price to pull back or dip into the price levels we want to trade, in our case these price levels are made of supply and demand imbalances.

If you want to learn how to trade using our supply and demand trading strategy, join our supply and demand stock trading course.

There are several ways of buying stocks and futures. When trading stocks, you can buy shares of the underlying stock or use options strategies to go long or short at these specific supply and demand levels, long calls or long puts or spreads. You can even buy a CFD (contracts for difference) on Tesla if you are in a country where it’s allowed.

Alfonso Moreno
Alfonso Moreno
Full time trader, expert technical analyst and founder of Set and Forget supply and demand online trading community. Traveler, photographer and adventurer.

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