TSLA’s volatility is ideal for Options trading. With price moving sideways in a narrowing range, we can see the Bollinger Bands have contracted significantly… which signal a ‘pop’ sometime soon.
Given the incredibly volatility in this stock, price could move up or down substantially, in the order of 50% either way.
Bollinger Bands on TSLA have become very narrow, a break out is imminent. There appears to be a false divergence on MACD and RSI. I have seen this type of divergence fail before where there is no ‘breaking of the back’ as we call it.
It looks like TSLA shares will pop upwards.
Option prices should be good now with the sideways movement.
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