TSLA Chart

I wanted to put out this short note on TSLA as I see the chart is kind of broken. I have traded TSLA in both directions this year. But the risk looks very much to the downside right now.

While it may look like the price may break the 150-day moving average and go up, it really looks very unlikely. This is the 4th attempt at doing that over the last 2 months and every time that 150-day has been a barrier.

Moreover, the 150-day moving average is not really curling around in a bearish to bullish reversal. There is a gap down at 146 which could easily be the next level for price to go down to. I am not saying it will definitely happen. I am saying there is a risk of that happening.

So, what to do if one is a long-term TSLA holder? I am not but my suggestion would be to sell some upside calls (or call spreads) to collect some premium.

I will probably short TSLA through options if I get a good opportunity to do so.