I like the trade setup in Tesla (TSLA) here. I think it provides a clear reward/risk parameter, and if earnings were not on August 3rd, a clear path to $270/share.
With earnings you never know how things are going to turn out, which is why I don’t hold stocks through those events. It is simply too difficult to predict what the numbers are going to be and what will be said on the conference call. With that said. I love two things about TSLA right now:
1) Breaking the downtrend off of the April highs today
2) Breaking through price level resistance right there at the $225-226 area.
Those are the dominant features of TSLA and if you are are to trade it, I would use a stop-loss of $218.20 which is just below the higher-low established on 7/18.
You also have a great deal of moving averages with the 20, 50, and 200-day, but they also fall below the desired stop-loss. However, the 5-day and 10-day moving averages are providing a nice sense of future direction for the stock and any move below those two levels, might warrant closing out the trade as well, once profits are established.
Here’s the technical analysis on TSLA: