We’ve got our eyes set on some charts that for some time now where signaling to us that the institutions were taking profits. For instance $TSLA stock had a nice rally, which we alerted to the LONG.
The move upwards played out perfectly and it ended up being a move upwards to facilitate some profit taking on shares by Elon Musk, which he advertised to the world. We continued to watch this stock as we knew it would be a good buy at some point. Tesla play a role in the larger agenda to push electic vehicles onto everyone and seel it off as a good thing.We know that the company is really owned by very large investors and so our interest in this stock has been big.
Recently we watched as price declined right into an Institutional Buying zone. One of those zones that we locate in our Level 2 classes. As this took place we now came across an article that is very interesting. It seems we aren’t the only one noticing that Tesla is a good buy at the current levels.
On Monday I will start looking at different Options Contracts to buy. They are a bit expensive so I will make sure I wait for volatility to settle down a bit before I make my purchase. The contract outlined in the main picture above may or may not be the contract I purchase.
The key take away is to recognize how we followed the main story-line of what was happening with price. We didn’t focus our attention to indicators and analyst rhetoric, we followed the chart and price action applying what we know to be true about price and we waited patiently. So now as other traders ar licking their wounds and not even thinking about engaging in long positions, we are ready and prepared to jump in with a calm and cool mindset.
Let this be a valuable lesson as to how to consistently take in the rewards of remaining focused on the real story-line and knowing when to strike. Price has just contacted the monthly demand zone and so it may take some time to shift momentum but we also know that the $SPY (S&P500) has also contact some major demand and so we have the odds with us that price, in time, will start to make its way higher on the chart.
It feels good to know we are doing things the right way!