TSLA: Potential Flag Pattern
Updated: Sep 5, 2020
Tesla, $TSLA, has been on a tremendous run since late March 2020, more than doubling off the $350 range in less than three months. I really like its action over the last few weeks. Notice the very tight action on very low volume. It looks to be forming an O'Neil style high, tight flag. In How To Make Money In Stocks, a tight flag is defined as a stock doubling in price and then correcting 10-25% in three to five weeks. Although TSLA does not fit this definition perfectly, in the general sense, it is showing that extreme strength and a resistance to selling even after its large gain. Anything can happen here and risk management is always the #1 priority, but Tesla is definitely a stock worth watching for a strong move higher.
Full Disclosure: Tesla is a stock I currently own.
Disclaimer: This information is issued solely for informational and educational purposes and does not constitute an offer to sell or a solicitation of an offer to buy securities. None of the information contained in this post constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. From time to time, the content creator or its affiliates may hold positions or other interests in securities mentioned in this blog or the associated Twitter and Instagram feeds. The stock or stocks presented are not to be considered a recommendation to buy any stock or stocks. This material does not take into account your particular investment objectives. Investors should consult their own financial or investment adviser before trading or acting upon any information provided. Past performance is not indicative of future results.