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From 2017 to 2019, Tesla was trading between the range of $180 to $400.

All that changed when it broke above $400, then went to $500, then $600, then $700, then $800, then $900, all within the span of a few weeks. Will it hit $1000 next?

In this video, I explain my reasons for buying Tesla stock, how I screwed up the trade, and how you can tackle parabolic charts such as this.

Enjoy the video, and remember to “like” and “subscribe”!

With a confluence of good news, Tesla (NASDAQ: TSLA) has been one of my best stock investments to date.

The shares hit a record high after beating estimates for vehicle deliveries in the 4th quarter, and Tesla’s Chinese Gigafactory has started delivering its first cars.

 

Looking at this weekly chart, we can see that the general pattern is a trending trading range.

From 2014 to 2017, the stock traded between $180 and $280, which was around a $100 range.

From 2017 to 2019, the stock traded between $250 and $380, which was around a $130 range. There was a brief period where is also dipped down back to test the prior range bottom of $180.

Depending on where you bought, your returns could range from 80% to 140%, which is pretty awesome for your portfolio.

And now that prices have broke above the $400 level, I am expecting price to stabilise and form a new trading range.

At this point, it is hard to tell where the boundaries of the range is going to be, but if you are looking to buy, then it is best to buy near the bottom of the range once it gets established.

I will continue to monitor this stock since it is in my portfolio, and post any new updates or buying opportunities in my free Telegram channel.

See you on the inside!

Tesla recently posted a cash balance increase to $5.3 billion and reported a profit of $1.86 per share, shattering analyst expectations for a loss of 42 cents per share.

Elon Musk promised a 2020 rollout of a cheaper SUV and more self-driving technology to stay ahead of larger rivals rushing into the premium electric vehicle market he created.

 

 

Looking at the chart of Tesla, we can see that it traded between the range of $250-$390 for almost 2 years (mid 2017 to mid 2019), before breaking to test a major support level at $180.

From there, it has made a strong recovery, with a whooping 70% gain from its June 2019 bottom.

Now, prices are close to $300, and it looks poised to test the highs of $390 again.

I will continue to hold and look for opportunities to accumulate more again.