{"id":4881,"date":"2017-02-22T04:36:29","date_gmt":"2017-02-22T09:36:29","guid":{"rendered":"http:\/\/www.morpheustrading.com\/blog\/?p=4881"},"modified":"2017-03-13T04:51:27","modified_gmt":"2017-03-13T08:51:27","slug":"tsla-breakout-2017","status":"publish","type":"post","link":"https:\/\/morpheustrading.com\/blog\/tsla-breakout-2017\/","title":{"rendered":"Why Tesla May Soon Enjoy Another Monster Breakout [$TSLA]"},"content":{"rendered":"<figure id=\"attachment_4884\" aria-describedby=\"caption-attachment-4884\" style=\"width: 300px\" class=\"wp-caption alignright\"><a href=\"https:\/\/tsla4tesla.blogspot.com\/2016\/01\/arian-in-tesla-model-s.html\" target=\"_blank\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-4884 size-medium\" title=\"Tesla \" src=\"https:\/\/www.morpheustrading.com\/blog\/wp-content\/uploads\/2017\/02\/tesla-arian-300x225.jpg\" alt=\"$TSLA stock for Tesla car\" width=\"300\" height=\"225\" srcset=\"https:\/\/morpheustrading.com\/blog\/wp-content\/uploads\/2017\/02\/tesla-arian-300x225.jpg 300w, https:\/\/morpheustrading.com\/blog\/wp-content\/uploads\/2017\/02\/tesla-arian-110x83.jpg 110w, https:\/\/morpheustrading.com\/blog\/wp-content\/uploads\/2017\/02\/tesla-arian-768x576.jpg 768w, https:\/\/morpheustrading.com\/blog\/wp-content\/uploads\/2017\/02\/tesla-arian-1024x768.jpg 1024w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a><figcaption id=\"caption-attachment-4884\" class=\"wp-caption-text\">Arian in Tesla Model S<\/figcaption><\/figure>\n<p>Tesla, the dynamic manufacturer of <a href=\"https:\/\/www.tesla.com\/modelx\" target=\"_blank\" rel=\"noopener\">futuristic cars<\/a>, cutting-edge energy storage, and slick solar panels, was a <em>sweet ride<\/em> for traders who bought the massive breakout back in April of 2013.<\/p>\n<p>Preceded by three years of bullish basing action, that breakaway gap led to a cool\u00a0350% gain in the six months that followed.<\/p>\n<p>Since then, the overall dominant trend\u00a0of Tesla ($TSLA) has been sideways.<\/p>\n<p>However, the long-term charts are now hinting that <strong>$TSLA may soon break out with another monster rally to new highs.<\/strong><\/p>\n<p>Continue reading for our &#8220;no nonsense&#8221; chart analysis that shows you why&#8230;<\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">TABLE OF CONTENTS<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/morpheustrading.com\/blog\/tsla-breakout-2017\/#TSLA_%E2%80%93_Not_Your_Typical_Breakout\" >$TSLA &#8211; Not Your Typical Breakout<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/morpheustrading.com\/blog\/tsla-breakout-2017\/#Lengthy_Consolidations_Lead_To_Powerful_Rallies\" >Lengthy Consolidations Lead To Powerful Rallies<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/morpheustrading.com\/blog\/tsla-breakout-2017\/#Could_This_Time_Be_Different\" >Could This Time Be Different?<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"TSLA_%E2%80%93_Not_Your_Typical_Breakout\"><\/span><strong>$TSLA &#8211; Not Your Typical Breakout<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>After scoring that 350% gain back in 2013, $TSLA eventually rallied another 50% before forming a top in September of 2014.<\/p>\n<p>The total advance of Tesla&#8217;s rally was close to <strong>600% over 17 months,<\/strong> which was an incredible move considering the $300 stock started that run with just a $40 share price.<\/p>\n<p>Although we have seen even bigger moves of 1,000% in the past, such stocks are typically not as liquid as\u00a0$TSLA.<\/p>\n<p>Also, stocks that rally 1,000% or more usually begin as tiny stocks with a share price below $10.<\/p>\n<p>This is what makes the previous $TSLA rally all the more impressive.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Lengthy_Consolidations_Lead_To_Powerful_Rallies\"><\/span><strong>Lengthy Consolidations Lead To Powerful Rallies<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>After such a strong advance like the 2013 rally, it&#8217;s to be expected that $TSLA would need some time to digest its gains.<\/p>\n<p>In this case, we would normally look for <em>at least<\/em> a one-year base of consolidation to develop.<\/p>\n<p>On the long-term quarterly chart below, notice that $TSLA has been consolidating between the $200 to $300 range for the past nine quarters (more than two years).<\/p>\n<p>Also, the current consolidation pattern is\u00a0similar to the initial basing action when $TSLA went IPO.<\/p>\n<p>Notice how the base that preceded the massive 2013 breakout was similar in length to the current base of consolidation:<\/p>\n<p><img decoding=\"async\" src=\"https:\/\/www.morpheustrading.com\/\/%7Erick\/\/charts\/2016\/170216TSLA.png\" alt=\"$TSLA QUARTERLY \" title=\"\"><\/p>\n<p>Since each bar on the chart above represents three months of price action, the quarterly chart does an excellent job of showing us the &#8220;big picture&#8221; of Tesla&#8217;s overall trend.<\/p>\n<p>But let&#8217;s also take a look at the weekly chart, which gives us a more zoomed in perspective of recent price action:<\/p>\n<p><img decoding=\"async\" src=\"https:\/\/www.morpheustrading.com\/\/%7Erick\/\/charts\/2016\/170217TSLA2.png\" alt=\"$$TSLA WEEKLY \" title=\"\"><\/p>\n<p>Annotation #3\u00a0on the chart above shows $TSLA has enjoyed a three-month rally of over 50% since forming a bottom at the $180 area (November 2016).<\/p>\n<p>We have seen similar moves in 2015 (#1) and 2016 (#2), but both rallies failed to\u00a0produce bullish consolidations and breakout.<\/p>\n<p>As such, prices gradually slid back down to the lows of the range both times.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Could_This_Time_Be_Different\"><\/span><strong>Could This Time Be Different?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>We do not have a crystal ball, but we <em>do<\/em> know what a bullish consolidation pattern looks like.<\/p>\n<p>Ideally, $TSLA will form a <a href=\"https:\/\/www.morpheustrading.com\/blog\/how-to-cup-handle-video\/\" target=\"_blank\">cup and handle<\/a> pattern from here.<\/p>\n<p>To do so, Tesla should pull\u00a0back no more than\u00a020% to 30% off the recent swing high, then form\u00a0a constructive base over the next\u00a0two months.<\/p>\n<p>If the stock can\u00a0do that (or something similar), then $TSLA may have<strong>\u00a0solid opportunity to break out to new all-time highs<\/strong> this year.<\/p>\n<p>If the breakout does come, remember to look for a substantial increase in volume to confirm the move.<\/p>\n<p>Specifically, a breakout to new highs should be accompanied by a 50% to 100% jump in volume over <em>multiple<\/em> weeks (not just a single week).<\/p>\n<p>Considering the huge bullish consolidation over the past two years, such a move would be a clear buy signal that screams at us,<em> &#8220;The beast is back!&#8221;<\/em><\/p>\n<p>If you&#8217;re a subscriber of <strong><a href=\"https:\/\/morpheustrading.com\/services\/swing-trade-alerts\" target=\"_blank\"><em>The Wagner Daily<\/em><\/a><\/strong> newsletter, keep an eye on our daily watchlist for our potential buy entry into $TSLA.<\/p>\n<p><em>Do you think Tesla is setting up for another massive breakout? Drop us a comment below to share your thoughts with the world!<\/em><\/p>\n<p><center><script src=\"\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js\" async=\"\" type=\"text\/javascript\"><\/script><!-- Footer of content --> <ins class=\"adsbygoogle\" style=\"display: inline-block; width: 300px; height: 250px;\" data-ad-client=\"ca-pub-7565144363001883\" data-ad-slot=\"7002222565\"><\/ins><script type=\"text\/javascript\">\/\/ <![CDATA[ (adsbygoogle = window.adsbygoogle || []).push({}); \/\/ ]]><\/script><\/center><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Tesla, the dynamic manufacturer of futuristic cars, cutting-edge energy storage, and slick solar panels, was a sweet ride for traders who bought the massive breakout back in April of 2013. Preceded by three years of bullish basing action, that breakaway gap led to a cool\u00a0350% gain in the six months that followed. Since then, the [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_links_to":"","_links_to_target":""},"categories":[5],"tags":[],"class_list":["post-4881","post","type-post","status-publish","format-standard","hentry","category-stock-picks-analysis"],"_links":{"self":[{"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/posts\/4881","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/comments?post=4881"}],"version-history":[{"count":0,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/posts\/4881\/revisions"}],"wp:attachment":[{"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/media?parent=4881"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/categories?post=4881"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/tags?post=4881"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}