TSLA Trade on Jan 26, 2022 09:57 from JRockTrades: Tradervue User Stock Trades.

Big Picture

Tesla has been trading in a wide range. They reported very strong vehicle deliveries in early January, but the stock has sold off with the market and high growth names in particular. It is now several hundred points below where it was trading following those numbers.

Tesla has earnings today, making it very interesting to a lot of people.

Technical Setup

TSLA had formed a wedge below VWAP which then broke to the upside. I bought a pullback to the top of the breakout area risking about $2 which would signify a failed breakout and invalidate my thesis.

Trade Management

I sold 50% of my position when price move to it's most recent high to cover risk and be profitable in case it reversed from this point. I then sold a further 30% when price moved to the pre-market high area. Price consolidated in a range above 959 for several minutes and I trailed my stop below that level. That broke to the downside taking me out of the trade.

Conclusions

In this market we haven't seen many trending days. Price action has been very volatile with wide ranges during this selloff, which may have bottomed a couple days ago. It is important to take profits quickly and I did that well in this trade.