I have been watching with amazement how MM's appear to once again be successfully steering the share price of TSLA towards the long term support line and a point of major movement either up or down just prior to the end of the quarter. Those of us following TSLA TA for years have seen this playbook many times in the past.........where the share price 'coincidentally' ends up on a longer term support/resistance line just before the announcement of deliveries and/or just before a quarterly earnings call, and thus that 'news' has a magnified effect on TSLA share price movement after hours and the following week.
Perhaps more interesting is that this time, as a result of a rather steady climb in stock price over the last year, it appears that MM's will enjoy the added volatility of landing the share price on a 1-year trend line instead of just a 1-month or 3-month trendline. That would be a target price for the MM's of roughly 600 when we start getting some news regarding Q1 results.
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What we have also observed from the past is that when a 6-month (or longer) trendline is broken we should expect at least a 20% move in share price - and this will happen very quickly. That should put us in the mid-700's or back near 500 in a flash.....and then a continued drift in that direction until Big Money is satisfied that they are ready to make money in the other direction.....just a word of caution to any newer TSLA investors playing the very short game with options. Speed bumps ahead!
It should not be overlooked that the 'recommended' Stop-Loss price at the moment is $516.90 - and that this Stop-Loss recommendation is higher than a 20% drop from a share price of $600
And it should be noted how many time the stock price is moved
just beyond the recommended Stop-Loss price to clean out the accounts of share holders that still believe that the game is not rigged against them
I am watching this closely in both directions, but selfishly looking for an opportunity for TSLA to break below the 1-year trendline long enough and far enough to roll some more shares from the IRA to the Roth account before we reverse direction as the infrastructure bill rolls out. I would encourage anyone with an IRA to prep for such an opportunity (complete your Roth IRA Conversion form now and have it in-hand, ready to send to your brokerage at a moments notice), because it is often easy to get the short term blinders on when the share price is tumbling and miss out on the longer term opportunity to save bigtime on taxes down the road - especially if we get the chance to roll shares into our Roth accounts in the next few weeks and then have the share price much, much higher before we have to pay taxes for that rollover a year from now. This could be sweet!
