TSLA oversold and ready for Bounce
This could be an infamous dead cat bounce but if history rhymes then we should see everyone start talking about TSLA towards earnings and media coverage means meme stock action that defies fundamentals.
Bears are in a lot of profit and market makers may be ready pull it up towards the longer term MAs real quick to screw both calls and puts expiring this week.
"Bespoke Investment Group took at look at prior periods when Tesla stock fell more than 20% over a seven-day stretch. It found 23 instances since 2010 and found that big declines are a set up for big gains.
Tesla stock typically rises about 37%, 84%, and 238% over the next month, three months, and six months, respectively, after a the rapid 20%-plus drop."
Bears are in a lot of profit and market makers may be ready pull it up towards the longer term MAs real quick to screw both calls and puts expiring this week.
"Bespoke Investment Group took at look at prior periods when Tesla stock fell more than 20% over a seven-day stretch. It found 23 instances since 2010 and found that big declines are a set up for big gains.
Tesla stock typically rises about 37%, 84%, and 238% over the next month, three months, and six months, respectively, after a the rapid 20%-plus drop."
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.