Hello, I’m The Cafe Trader.
We’ve been tracking the MAG 7, and Tesla is the next focus for our short-term options or swing trade strategy.
I’m looking at two scenarios that are likely to play out with TSLA over the next few weeks.
For fundamental and long-term analysis, check my other article on TradingView.
⸻
[We are in the middle of a big range.]
Even though we’re sitting near the middle, bulls have just pushed into a bearish liquidity level (marked “Bottom of Supply”). We don’t know how much supply is left here, but the fact that bulls are pressing in suggests the bears are losing steam. This doesn’t mean price won’t pull back—it just means bearish follow-through may be weaker.
With that in mind, here are the two main scenarios:
⸻
1. Green Arrow — Bullish Test of Sellers
– Stock
If bulls keep the pressure on, we may see a test of the “Big Sellers” zone. The reaction there will tell us a lot.
If we see a sharp rejection (a quick tag followed by a flush) or a fake breakout that reverses, I’d approach longs more cautiously.
However, an aggressive entry long around the “Top of Demand” (around $321) could make sense, especially considering how buyers have been stepping in. This setup is primed to retest highs.
– Options
Pricing will be key here—especially post-earnings (EOD).
I’d look 2 weeks out. If you can snag a 335C for $5.00–$7.00, that’s solid.
Target profit would be into the Big Sellers zone. If we get a strong move before then that nets 3R–5R, I’d take it.
⸻
2. Red Arrow — Bearish Reaction + Big Buyer Support
– Stock
If earnings disappoint, we could see a shift in momentum. That said, big buyers should step in around $295.
This is actually the more likely scenario in my view.
From there, I’d look for a swing back up into the 330–350 range.
We’ll need to see how sellers handle the drop—are they aggressive, or is it just a lack of buyer interest?
Either way, this could align well with long-term buy zones.
– Options
On a flush to $295, I’d look for 3–5 day expiration calls around the 305 strike. @ a price between $1.50–$1.70 (look for 2-3R)
After the bounce, I’d expect a pause or retest of the uptrend line.
Then I’d look 2–3 weeks out for the 325C or 330C, ideally between $3.00–$5.00.
I’ll keep an eye on option pricing and update if we reach that level.
⸻
That’s all for short-term TSLA.
Follow for more charting and trade ideas.
📲 thecafetrader
We’ve been tracking the MAG 7, and Tesla is the next focus for our short-term options or swing trade strategy.
I’m looking at two scenarios that are likely to play out with TSLA over the next few weeks.
For fundamental and long-term analysis, check my other article on TradingView.
⸻
[We are in the middle of a big range.]
Even though we’re sitting near the middle, bulls have just pushed into a bearish liquidity level (marked “Bottom of Supply”). We don’t know how much supply is left here, but the fact that bulls are pressing in suggests the bears are losing steam. This doesn’t mean price won’t pull back—it just means bearish follow-through may be weaker.
With that in mind, here are the two main scenarios:
⸻
1. Green Arrow — Bullish Test of Sellers
– Stock
If bulls keep the pressure on, we may see a test of the “Big Sellers” zone. The reaction there will tell us a lot.
If we see a sharp rejection (a quick tag followed by a flush) or a fake breakout that reverses, I’d approach longs more cautiously.
However, an aggressive entry long around the “Top of Demand” (around $321) could make sense, especially considering how buyers have been stepping in. This setup is primed to retest highs.
– Options
Pricing will be key here—especially post-earnings (EOD).
I’d look 2 weeks out. If you can snag a 335C for $5.00–$7.00, that’s solid.
Target profit would be into the Big Sellers zone. If we get a strong move before then that nets 3R–5R, I’d take it.
⸻
2. Red Arrow — Bearish Reaction + Big Buyer Support
– Stock
If earnings disappoint, we could see a shift in momentum. That said, big buyers should step in around $295.
This is actually the more likely scenario in my view.
From there, I’d look for a swing back up into the 330–350 range.
We’ll need to see how sellers handle the drop—are they aggressive, or is it just a lack of buyer interest?
Either way, this could align well with long-term buy zones.
– Options
On a flush to $295, I’d look for 3–5 day expiration calls around the 305 strike. @ a price between $1.50–$1.70 (look for 2-3R)
After the bounce, I’d expect a pause or retest of the uptrend line.
Then I’d look 2–3 weeks out for the 325C or 330C, ideally between $3.00–$5.00.
I’ll keep an eye on option pricing and update if we reach that level.
⸻
That’s all for short-term TSLA.
Follow for more charting and trade ideas.
📲 thecafetrader
Trade active
Obviously the Red Scenario is in play, Let's see how TSLA closes. I'll take a look at the options chain to see about pricing. We want to be patient, do not try and go to early, especially with options. We want TSLA to run into the demand.Note
Right in the middle of the range, TSLA is up after hours. That was a fairly aggressive bounce away from that trend line. I still expect us to chop around a little bit. I do remain very Bullish with TSLA
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.