Round Number Speedbump:
When one sets out on a destination there are often pitfalls that come along the journey. The daily chart below of TSLA shows how it recorded a bearish spinning top candlestick at the very round 400 number Monday. I am still very bullish on this name, but candles can help one get a better basis, or shave around a core position on weakness or strength. This may be for the latter. This is probably a good time for one of my favorite thoughts for long-term investing, “When you’re in a nice trade, great entry, solid plan, well thought out target and you’re getting that itch to tap out early, remember what the old man told me on the NYMEX floor ‘Hey kid if you want to take the train to California, you don’t get off in Chicago”. (Jimmy Jude). My belief is this is still headed toward the 480 measured move from the bull flag breakout but may need to catch its breath near 360 first. The MONTHLY chart shows how it came very close to a 414.60 cup base pivot Monday morning that started with that doji candle in November 2021. Keep an eye on peer RIVN which we wrote about in our 8/19 Consumer Note and how it was feeling fresh at the very round 10 number.