Tesla stock is trying to break out again

Tesla, Inc. designs, develops, manufactures, leases, and sells electric vehicles and energy generation and storage systems in the United States, China, Netherlands, Norway, and internationally. The company operates in two segments, Automotive; and Energy Generation and Storage. 

Tesla stock forecast

As expected and forecasted, 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 of around $361 per share. Despite past production delays, parts shortages, labour cost overruns and other difficulties, Tesla (TSLA) was on track for improved performance in 2020 and beyond due to its dominant position in the electric vehicle industry.

The coronavirus outbreak might probably hurt Tesla Inc (NASDAQ) and thousands of other stocks worldwide. In the meantime, supply and demand are playing their game with that strong monthly imbalance.

Tesla Inc. TSLA jumped nearly 9% on Monday, 27th April 2020, on the heels of a report saying the Silicon Valley car maker has told some workers at its main factory in California to prepare to return to work by next week before a regional stay-at-home order is lifted.

Shares of Tesla have gained 236% in the past 12 months, contrasting with losses of around 3% for the S&P 500 index. The fact that Tesla is uptrending and a strong imbalance has gained control is not mentioned anywhere except here.

Tesla price action analysis

This is the kind of price action technical analysis you will learn in our trading community. You will learn how to locate new supply and demand imbalances and trade without using any indicators, no news, no fundamental analysis, no earnings announcements, no volume or VSA analysis. Just Tesla supply and demand imbalances.

Trading supply and demand imbalances is ideal for beginners and those with full or half-time jobs. You won’t need to stay in front of the computer all day long trying to move price action with your mind. 

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 do you see positive earnings, 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 in 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.

Join our supply and demand stock trading course to learn how to trade using our supply and demand trading strategy.

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.