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Trade idea: Tesla

Chris Weston
Head of Research
7 May 2021
Retail traders have been primarily momentum and trend based, so with this in mind, lets keep it simple and look at the longer-term uptrend and assess price action around this support in the near-term.

Tesla: perhaps the most watched trendline in financial markets

Perhaps Musk can pull it out of the bag and promote a resumption of the bull trend, but the headwinds are growing and if they lose the momo crowd, the shorts could have a far better time of it.

Trend breaks don’t always lead to collapses, but if they lose retail then the bid may dry up and buying puts could become a lot more expensive.


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