In a follow-up to my previous post on TSLA, I show how simple rules yielded a nice 30% gain in $TSLA. When volume and price work together, it is a powerful thing. In my previous blog, I said to watch for volume to support any move. Well, here are the results of today’s market update.
With building volume and price, TSLA gave a very nice bullish break of the congestion channel and consolidation wedge formed on the daily chart. This was confirmed with a “double-dot” Hawkeye Roadkill buy signal. Since my price target was projected at $280, a $257 entry would be a 10% target. A 5% risk would be a 2:1 ratio.
But that was not the end of the story. After earnings, $TSLA went on to beat expectations, and price drove up to $340, or about a 30% gain from the signaled entry point. With a 5% risk, that was over 5:1 reward:risk ratio.
I show these examples and historical updates to help you see that following simple rules can lead to good potentially great profits. Learn to trade the Hawkeye way.
Join Randy in the next free LIVE Hawkeye Demonstration Room held every Wednesday at 9.30am EST US. You will learn more about volume and volume price analysis and see more examples and live trade setups. It is open to all.
Learn to trade the Hawkeye way.