• T. Livingston

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.


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