Tesla, Inc (TSLA) announced a five to one stock split this week aimed at making ownership more accessible to traders, investors and obviously Tesla employees.
Tesla Inc (TSLA) stock is very expensive but it’s also heavily traders by those wanted to sell option premium. There are many option strategies you can use to trade Tesla stock, most stock traders will prefer selling time and option premium instead of the ownership of the stock,
With this 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.
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 around $361 per share and it’s been rallying since, breaking all-time highs again. 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.
Well, the coronavirus outbreak might probably hurt Tesla Inc (NASDAQ) as well as thousands of other stocks in the whole world. In the meantime, supply and demand is playing its game with that strong monthly imbalance. There is a new weekly demand level created around $1,019 which could be a nice spot to buy Tesla (TSLA) stock again if the trend is intact.
Shares of Tesla have gained 236% in the past 12 months, contrasting with losses around 3% for the S&P 500 index. The fact that Tesla is clearly trending up trending and a strong imbalance has gained control is not mentioned anywhere except here.
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.
Watch Tesla (TSLA) stock supply and demand video analysis below
Trading supply and demand imbalances is ideal for beginners and those with a full or half time job, you won’t need to stay in front of the computer all day long trying to move price action with your mind.
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.
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