Thio.

The usual markets recover because I think everyone is no cyst.

The meteoric rise in the Tessler share price so far this year.

Beginning of February, it more than doubled for the year.

Today it's up something like 300% over the last few months or so.

Let's take a quick look.

A Tessa look at the reasons why will have will jump on the platform in a second.

Take a look at that.

The move that we've seen over the last few weeks and months for tests come back.

Talk about the reasons why I look at the big levels and then go back on and see what actually, is it a buy or actually, should we be short selling up here that it really has got too far ahead of itself as usual If you're watching and you haven't subscribed, If you can click on subscribe, support the channel on, we will continue to put out what is hopefully timely and interesting videos or the way through 2020.

Let's catch up with that ballistic move in the Tesla shepherd us.

Let's take a look at this.

Test is sharp.

Oh, this is my mistake.

This is this is Bitcoin.

But I think this is a an interesting comparison between the two.

Are we seeing a bubble for Tesler area Intestinal?

You can see out parabolic.

The price has gone up since September of 2019 $226 a share.

This year so far in February has traded well above $950 a share.

So we're gonna come back, have a look at this scene with opportunities.

See that actually, has this got overextended on the opportunity is actually Tiu sell short on Tesler.

So let's go through So some of that headline numbers. 00:01:55.060 --> 00:02:0.770 So as of the fourth of February this year, the share price was up 130% year to date. 00:02:0.770 --> 00:02:2.590 So you have more than doubled your money. 00:02:2.800 --> 00:02:10.460 If you don't go in on New Year's Eve if we went back three months to November, the share price has traveled from the levels back then.

And of course, it has been one of the most shorted shares in the U.

S.

Market.

That's people basically betting institutions, mainly betting it's gonna fall.

And clearly they've all lost a lot of money as the share prices rallied.

And as we see a rally, people who assured institutions who was sure have bean buying back in tow book their losses, and we have what's known as a short squeeze.

So this buying has also, I think, helped fuel the price higher.

There has been good news for Tesler clearly in the last six months, leaving the share price toe one side.

It has been a feeling that the company has turned its fortunes around.

In the second half of 2019 the last earnings update at the end of January, earnings per share for Tesler came in at $2.

14.

That was against about dollar 72 but the market was expecting, so it definitely outperformed there, and one invest with management company has come in with a very optimistic target on the face of it off $7000 a share over the next five years.

So it so clearly the news has been goods.

But has the price just got a little bit ahead of itself up in these levels?

There are also concerns, given that the new factory that opened in China last year the effect, of course, the Corona virus could have on its foot artist next quarterly earnings.

But let's take a look at the big levels.

So what's The Tesler will jump back onto the chart and see where the opportunity might bay because the share price has gone parabolic.

I think the most immediate resistance we have is that all time I set forth of February at $969 a share.

After that, we're almost is plucking numbers out the air.

$1000 a share looks like an obvious psychological level.

After that, I've gone through 1500 which again seems like a big number. 00:03:59.240 --> 00:04:3.890 But it has moved something like $300 already just in the first week in February. 00:04:3.890 --> 00:04:6.290 So we have this massive volatility of the moment. 00:04:6.470 --> 00:04:15.100 Let's look at the levels on the damn size I think the most immediate level is $673 a share, the lows from right at the beginning of February.

After that, I think the next one is around about 4 90 a share from the middle of January.

And then I've gone back to the lows from the end of last year coming in just ahead of $400 a share.

So these things, they're all a long way away from where the share price is trading.

But you know, we have seen it more than doubled this year.

Massive volatility.

So we need to give it up in a league away.

Anyway, Let's jump back onto the platform and see where the opportunity might be.

Let's just remind ourselves what tests were done for a long time.

2017 July 2017 through to December 2018.

So a year and 1/2 says the share price could not get through 3 83 90 But in recent months this has changed. 00:04:56.070 --> 00:05:3.140 So it really started moving December of 2019 pushing through that 3 90 milk, and this is where we are now. 00:05:3.330 --> 00:05:20.490 Let's just catch up zoom things in here so you can see why some people talk about but bubble when it comes to Tesler and compares it to some of the crazy days of the crypto currencies at the end of 2017 going it's 2018 where everyone was buying any Christ, just expecting the price to move higher.

And so far it's definitely be in the case in Tesla.

You know, we came into 2020 January, the second shares around, what, $420 if you'd held them into that spike beginning of Feb, double your money in a month.

But a move like this always tense, look somewhat overdone.

Let's bring in the indicators, and I guess we're gonna show hours.

Tess has been massively overbought since mid December.

About then, the price was, what, $390 a share?

The market didn't care away went the share price the last by signaling Adama, Mac D. 00:05:54.230 --> 00:06:5.540 We've got to go back to here mid December again, around about 3 90 when it was breaking out through those old highs that's really kept, kept the price under pressure for the previous year and 1/2. 00:06:5.900 --> 00:06:11.730 So there, by any stretch of the matter at the moment, it does look really overstretched.

That doesn't mean it can't go any I am.

We already heard that someone's put a price target of $7000 a share on Tesla's 10 times almost valuation at the time of recording.

But clearly any weakness still is like a buying opportunity.

Based on this trend on it, it could go a long way back.

And if we just went back to the breakout point, we're looking at, perhaps back down here around about $400.

So I don't think the indicators are really telling is too much the moment because they have moved to such an extreme.

Let's let's focus on the price So the 20 day moving average is coming in around about, what, 606 $115 down.

We've got various gaps left on the way up because of this parable it move that we've seen from Tesler.

Let's flip it over to a short because of the extreme. 00:06:56.960 --> 00:07:1.660 It is really hard for the scaling to make any sense on Tesla's. 00:07:1.660 --> 00:07:4.160 So let's look at two sides of the coin in. 00:07:4.170 --> 00:07:8.050 If we were a buyer, what we'll be doing if you were a seller wanted to sell short. 00:07:8.060 --> 00:07:10.290 Where do we need to think about managing a risk?

So it traded up February 4th, asshole.

I was about $968 we've seen quite a knee jerk reaction coming off a couple of $100 since then.

So I suppose the aggressive trade here, if you want to be a buyer, you're a buyer.

Wherever it's trading at that, I'm recording this just ahead of the markets open.

So let's say you're a buyer at $750.

Where did you stop goat?

The closest I would want my stop.

Probably the other side's off those lows fromthe six effect at the sight of 6 $85 down around there.

Perhaps you know why To stop.

We're gonna put it below.

Generally 30 flows around about 6 15 a ship.

But actually, you know the trade I'm gonna do I'm gonna sell short because I think you're despite the fundamentals of Tesler.

Despite the strength of this move, it does feel like it's overdone. 00:07:56.490 --> 00:08:9.950 So what I'm thinking about doing is leaving in order to sell if we get any strength with stop loss is the other side off 9 75 So I don't know what saying I don't think you go any higher than 9 75 for $1000. 00:08:9.950 --> 00:08:15.050 But I do think in the short term perhaps it's been a bit overstretched and we have something of it.

I'm winding toe only where we were, you know, a week 10 days ago, down around about 5 50 a share.

So what I want to do put a stop loss to sell.

Perhaps in this sort of area here, if we get a blip up to 7 80 stop loss it.

Sorry that in order to sell it there and then have a really wide stop loss here.

But But knock it up to maybe a Pharisee dollars share.

And clearly because of the volatility, you know, we need to have white stop losses.

If it drops back towards 500 I'll start walking that stop lossed down.

But I just think perhaps that's for me.

Ah, the going against the emotion, the euphoria that we've seen the Tessler.

And perhaps this move in early Fab is something of a last gas move. 00:08:59.850 --> 00:09:2.370 Higher before we see some sort of normality return. 00:09:2.370 --> 00:09:5.690 So let let's be set up in order to sell at 75. 00:09:5.700 --> 00:09:8.100 So I've got my order in Salad 75. 00:09:8.800 --> 00:09:15.130 Put a stop saying, Let's make it $1000 to the moment at the level of risk I'm trading in my dealing ticket.

My risk here is £1566.

Let's just knock that knock that size down.

So normally on the commodity trades we do We risk a couple £100 risk because this is somewhat different because of the size off test, the shares their value.

I'm bumping the risk up a bit here, so I'm gonna sell to If the price gets to 7 75 with a stop at $1000 a share, on my risk is $348.

That's something, this place, a limit order.

So the orders in I think it has been a crazy market this year.

Tesla.

Clearly, people have been rewarded for just piling in, holding and keeping their fingers crossed.

The markets rewarded them, but it does feel very frosty up here, so we'll see if it blips up to 7 75 Get short with a stop above those highs and we'll come back to it and maybe a couple of weeks, three weeks time and see how it's doing just to show you in the portfolio.

It's usually got a whole mix of trades in here, the usual markets.

We trade like gold and silver and oil.

But if I go to orders, there is my Tesla order waiting to get filmed, selling two at 7 75 with a stop at a massive tuned and $25 away.

And I just think it is a difficult market to call.

Given the size of the move up here, it's quite difficult to apply traditional and now on analysis techniques that we normally use other markets.

But here I want to go against the euphoria and see how it plays out says There's always one that splits opinion.

We'll see what the next few weeks have in store, but for this update, we'll leave things.

They're so for me.