{"id":20849,"date":"2023-04-27T07:30:55","date_gmt":"2023-04-27T11:30:55","guid":{"rendered":"https:\/\/www.jeffclarktrader.com\/?p=20849"},"modified":"2023-04-27T07:30:55","modified_gmt":"2023-04-27T11:30:55","slug":"i-hate-this-stock-but-its-flashing-opportunity","status":"publish","type":"post","link":"https:\/\/jeffclarktrader.com\/market-minute\/i-hate-this-stock-but-its-flashing-opportunity\/","title":{"rendered":"I Hate This Stock, but It\u2019s Flashing Opportunity"},"content":{"rendered":"

Jeff’s Note:<\/strong> Starting as early as tomorrow, a historic reset of the stock market is coming<\/a>.<\/p>\n

It won’t look like any bottom you’ve ever seen before… it’s going to ROLL – giving you the chance to double your money 10 different times<\/a>, like I’ve shown before…<\/p>\n

To find out all the details on this rolling bottom – and my biggest prediction yet – click right here to sign up<\/a> for my briefing tomorrow at 11 am.<\/p>\n

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Today I’m going to show you a setup on a stock I absolutely hate.<\/p>\n

In fact, I can hardly believe that this is one of the best<\/em> setups I’m seeing in the market right now…<\/p>\n

Despite my personal feelings, it’s not a bad trading opportunity.<\/p>\n

The stock in question is Tesla (TSLA). My personal feelings about Tesla have nothing to do with the company’s fundamentals or leadership.<\/p>\n

You see, back in 2019, I bought into the hype. I picked up a new Tesla Model 3 Performance model and wanted to try out the whole Electric Vehicle (EV) lifestyle.<\/p>\n

Long story short, my car was at the dealership 12 times before I had enough and sold it. I loved the experience of driving an EV but decided that ultimately the Tesla just wasn’t for me.<\/p>\n

I miss not having to pump gas, but the build quality issues with the vehicle were just too much.<\/p>\n

That said, investors clearly love TSLA stock. It’s one of the big names that’s kept the market afloat since the start of the year.<\/p>\n

Over the last few weeks however, TSLA has pulled back and might now be shaping up to be a great buying opportunity.<\/p>\n

Check out this price chart of TSLA below so I can show you what I mean…<\/p>\n

<\/p>\n

\"Image\"<\/p>\n

As you can see on the price chart, TSLA has had a strong start to the year.<\/p>\n

After putting in a bottom on January 6, the stock rallied over 113% before topping out on February 16.<\/p>\n

Since putting in this top, prices have pulled back, resulting in the two key features I want to show you on this chart.<\/p>\n

The first is the parallel channel I’ve drawn using the blue lines.<\/p>\n

After a stock makes a strong directional move, it will always pull back. What I’ve noticed after studying thousands of pullbacks is that they tend to be within a set of parallel lines.<\/p>\n

This is an important characteristic of counter-trend price action.<\/p>\n

As you can see, the pullback in TSLA is within those parallel lines. As long as prices remain within the boundaries of this channel, it’s likely the stock will break out to the upside and have another strong push higher.<\/p>\n

The second key feature is TSLA’s oversold reading in the Relative Strength Index (RSI) at the bottom half of the chart. The RSI is an incredibly powerful indicator when used properly.<\/p>\n

Don’t make the mistake of buying a stock just because it’s oversold. An oversold reading doesn’t mean anything unless it’s combined with other pieces of technical analysis.<\/p>\n

When I see an oversold reading and the market is also trading on top of an important moving average like the 200-day, that’s<\/em> worth paying attention to.<\/p>\n

In the case of TSLA, we’re seeing this oversold reading as the market is nearing the support line of the channel.<\/p>\n

This means there’s a high probability that the stock is close to putting in another bottom.<\/p>\n

<\/p>\n

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Free Trading Resources<\/strong><\/p>\n

Have you checked out Jeff’s free trading resources on his website? It contains a selection of special reports, training videos, and a full trading glossary to help kickstart your trading career \u2013 at zero cost to you. Just click here<\/a> to check it out.<\/p>\n<\/p><\/div>\n<\/div>\n

<\/p>\n

Like I said earlier, my personal feelings about a company will never get in the way of sharing a great trade setup.<\/p>\n

And if I’m right about Tesla, then the upside potential here is really exciting. I expect at least <\/em>a move of the same magnitude that took place from January to February.<\/p>\n

Over that period, Tesla went up by over $113. Another $113 move would equal about a 73% rally from current prices.<\/p>\n

I’ll keep an eye on the stock and will write an update if prices break out higher.<\/p>\n

Happy trading,<\/p>\n

Imre Gams<\/p>\n

<\/p>\n

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READER MAILBAG<\/h2>\n<\/div>\n

Have you traded Tesla in the past? If not, are you ready to give it a shot this time around?<\/p>\n

Let us know your thoughts – and any questions you have – at feedback@jeffclarktrader.com<\/a>.<\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

I can hardly believe that this is one of the best setups I\u2019m seeing in the market right now\u2026 <\/p>\n","protected":false},"author":55,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"ep_exclude_from_search":false,"service":"","footnotes":""},"categories":[1],"tags":[],"publication":[10],"person":[76],"newsletter-type":[],"ticker":[],"class_list":["post-20849","post","type-post","status-publish","format-standard","hentry","category-market-minute","publication-market-minute","person-imre-gams"],"acf":[],"_links":{"self":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/20849","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/users\/55"}],"replies":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/comments?post=20849"}],"version-history":[{"count":0,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/20849\/revisions"}],"wp:attachment":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/media?parent=20849"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/categories?post=20849"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/tags?post=20849"},{"taxonomy":"publication","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/publication?post=20849"},{"taxonomy":"person","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/person?post=20849"},{"taxonomy":"newsletter-type","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/newsletter-type?post=20849"},{"taxonomy":"ticker","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/ticker?post=20849"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}