Crisis has become opportunity for Tesla (TSLA).
After gapping from about $202 to a low of $172.41, the electric vehicle has become ridiculously oversold. It’s also over-extended on RSI, MACD, and Williams’ %R. From its last traded price of $178.54, we’d like to see it initially refill its gap around $202 again shortly.
Better, as you can see in the chart, every time TSLA gets this oversold using RSI, MACD, and Williams’ %R, it bounces back shortly after. We saw Tesla (TSLA) bounce back in February, in late October, in August, and in May. And that’s just going back about a year.
Using that strategy, we can play the same stock over and over again, when the indicators align.
Even MarketWatch just said, “While the chart indicates that Tesla’s stock is still firmly in a longer-term downtrend, it has also been flashing a bullish technical divergence that suggests the shorter-term tide may be changing. It could now be safer to buy on the next dip than to sell on the next rally.”