Yesterday index’s closed higher and stocks went along for the ride. I’m going to omit the index charts today cause there’s a lot I want to cover in terms of stock specific movement.
TSLA – she’s been in the watchlist every day since March 31st & that day it closed over the 20 Simple Moving Average, in which I noted “Historically, anytime we close above that 20MA, TSLA makes some very powerful moves” https://infocusinvesting.com/stock-watchlist-1-april-2021/
Since then, we’ve been following along with the price action as it’s been setting up. I’ve learned it usually pays to stick to a few good looking charts/sectors to maximize your focus to plan and execute trades.
On April 8th, I shared these 2 charts. If you are in the Discord community please download the “Big Book of Chart Patterns” PDF in the #technical-analysis channel. Training our eyes to see patterns takes plenty of hours in screen time.
The first one, showing a potential / expected move on TSLA based on the pattern developing with (the 2 green lines I drew which look like candlesticks)
In the second, I am showing the math on how I calculate a measured move of that bull flag pattern.
Monday started off the week proper with a 3.69% gain to start the move, and a massive follow through into Tuesday – closing 8.6% higher on the day. We closed .32 cents under my gap fill range target. Pretty amazing stuff. Again, the key was the 20SMA close + trendline breakout + bull flag formation.
As a bonus/confirmation indicator: I also noted in today’s chart, the declining volume during the consolidation zone, and the increase in volume on the breakout/moves higher.
I didn’t think that big of a move would happen all at once, but my swing play is loving the ramp up. As of this edit in premarket it’s 8:33AM, and we’re gapping up straight into/above the gap fill target zone of $781. As per my trade plan, my target is reached & I will close the swing trade at/near open. That doesn’t mean she’s done running… will keep her on watch for continuation.
Ok let’s move onto to some other charts.
EBAY – she’s setting up really nice, IMO. Very simple chart here, close to all time highs, earnings coming up soon. Depending on how we do heading into the report on April 27th, I’ll decide on holding or selling my 65C 5/21 swing. I believe EBAY will produce solid numbers and should send the stock higher especially in this environment. $68-$70 zone within reach with some time, but I’d definitely lock in profits before getting there.
BA – she’s been setting up on the low, digesting a nice price wave higher when it hit highs of 278.57 – I have been keeping this on watch and decided to take a swing on it via 260C 4/30. I entered around 1045AM and one of our members alerted they would be releasing delivery numbers at 11:00AM (which I did not know) At that moment, I had a strong feeling this would send the stock higher, and it did. We got a close over 8/21EMA on the daily chart with that positive news catalyst, and the swing was over 30% gain almost immediately after. This is IMO, the beginning of it’s next leg higher. It needs to break 258-260 zone to really get going.
BA (WEEKLY) – here’s another perspective as to the larger time frame and setup that is forming here. very bullish, IMO. We know many planes around the world are outdated by now, so there’s likely going to be a huge upgrade cycle happening in the next 1-5 years.
UBER – came across this as one of our members posted speculation on UBER getting into the weed delivery business. I did not enter swing based on that news, just simply on the chart setup/volume profile.
AAPL – has also been featured in the watchlist and is set up for continuation run
DKNG – low/medium conviction since we’re still under the 8EMA, but – this is the trade idea. We swung long from Monday into Tuesday and got the nice bounce off 100EMA which was good for a little over 30% profit.
Next target short term is to head back to 8/55EMA’s as marked in chart. Idea will be invalid if we break yesterday’s low of day @ 56.82. Below 57.50 I’d start to be cautious. (least likely scenario, IMO)