Tuesday Morning

Gator's Chart of the Day: TSLA

I'll probably never own one of their vehicles but I just might buy some of their stock.  There are several ways to look at the chart and draw trend lines but I think this is busy enough as it is.  After rolling over and gapping down in early April TSLA went searching for support.  Now it has a nice double bottom followed by a series of higher highs and higher lows.  Volume has been light until Monday when it moved smartly higher from the down trend line (now support) and closed above the 50 day simple moving average.

The Trade
There are a several of ways to approach this one but I like to start by taking a small position and planning on an add as it does either of two things: 1) comes back to test the breakout at about the 200 day and bounces ....... OR ..... 2) add as it continues moving higher with volume.

Tuesday would be day 3 of the move through the trend line so any add to the initial buy in the second scenario would have a tight stop just under the 50 day.  I would expect some resistance a little under 35.