Cutting TSLA Position
For now!
There's three pretty significant resistance levels simultaneously coming into play around [or near] the $325 resistance zone.
1) The $1 trillion market cap level is at $312 {based on 3.21 billion shares outstanding}.
2) The stock is up $100/share since earnings [April 22 $228 --> $328 May 13] in less than a month.
3) In my prior post I pointed out the $326 level as the next possible resistance level after $300 {which it blew through by $6/share, consolidated for one trading day, then gapped up $15/share the next morning}.
After the gap up to $315, the market revealed that it did in fact care about the $312/$1T level, as it bounced off of it pre-market, and on the open.
Today $326 did prove itself to be a resistance level as the morning high was put it exactly at this price.. although as I write this it just blasted through it {good thing I held onto a piece of the position!}.
I think it's totally possible for this stock to keep ripping up to the $360 level before showing any signs of slowing down, which is why I'm still holding 1/3 of the original position, but $340 has a pretty good chance of cooling it off too.
I'd like add back the shares I sold today [and then some?] at a well-established bounce level... perhaps $312, or $300 if a strong catalyst {wHicH ArE SoOoooOOooo rArE ThEsE DaYs} really pushes it down.
Meanwhile, the "CEO" of this company is in the middle east with his new best friend hobnobbing with {other lol} monarchs, as is standard for car company executives.
Also... totally possible I sell the rest of the shares today and buy them again on a future pull-back because this thing is gettin' steeeeeeeeeeep intraday (and it's up a full ATR: $17):
So I ended up selling 2/3 of the position at $327 and 1/3 at $335.
This ended up being a +25% realized gain on the trade [+6% for my portfolio] as I put 20% of my capital in it since originally initiating the position on March 14, ~60 days ago.
This ended up being a profitable trade mainly because: my original analysis turned out to be right and I got very lucky about the US striking a trade deal with China:
1) TSLA has only ever had 7 consecutive red weekly candles once, and based on the wick down weekly candle, I believed that it wouldn't do it again... for that week.
2) Elon was cozying up to the Tariff Commander In Chief to gain favorable treatment from the U.S. government; and shortly thereafter the regulations for autonomous robotaxi testing were loosened up in TSLA's favor.
And, something I didn't really expect but was a major positive catalyst: the U.S. and China appear to have struck a trade deal (which was one of the original ultra-negative downward pressures on the stock).
I still think TSLA has a ton of upside, and will probably be bought feverishly heading into the June robotaxi news catalysts; but for now, I'm selling the news at these elevated price levels and looking for good opportunities to buy back into the stock over the next few days/weeks.
Optimistically, I think TSLA will be above $500 before 2025 is over.
Trade confirmations:
