{"id":6622,"date":"2020-05-06T09:32:22","date_gmt":"2020-05-06T13:32:22","guid":{"rendered":"https:\/\/morpheustrading.com\/blog\/?p=6622"},"modified":"2023-01-25T12:27:12","modified_gmt":"2023-01-25T17:27:12","slug":"tsla-cup-handle-breakout","status":"publish","type":"post","link":"https:\/\/morpheustrading.com\/blog\/tsla-cup-handle-breakout\/","title":{"rendered":"Trade Alert: $TSLA Breakout From Cup With Handle"},"content":{"rendered":"\n<figure class=\"wp-block-image\"><img loading=\"lazy\" decoding=\"async\" width=\"650\" height=\"550\" src=\"https:\/\/new.morpheustrading.com\/blog\/wp-content\/uploads\/2020\/05\/tsla-logo.jpg\" alt=\"\" class=\"wp-image-6634\" title=\"\" srcset=\"https:\/\/morpheustrading.com\/blog\/wp-content\/uploads\/2020\/05\/tsla-logo-110x93.jpg 110w, https:\/\/morpheustrading.com\/blog\/wp-content\/uploads\/2020\/05\/tsla-logo-300x254.jpg 300w\" sizes=\"auto, (max-width: 650px) 100vw, 650px\" \/><\/figure>\n\n\n\n<h1 class=\"wp-block-heading\">Tesla ($TSLA) is on our radar for potential breakout buy entry in the coming days. Here&#8217;s why&#8230;<\/h1>\n\n\n\n<p><iframe loading=\"lazy\" width=\"580\" height=\"680\" src=\"https:\/\/4966a6ff.sibforms.com\/serve\/MUIFAOyl4S5Qdajs7q3LemJKudDbMHB24p2SAorKuWWuauy3e1eFPtLgTh5BoPCh3XzIz3rZE_YyIqvc9IEl_xMkRg3MTlG0Zn5eqY3J2eKMjOE-jPuS43ZXewKssUaGt1kllR56wV2u1lBXoYfKSzEgeeTjLyjdSao87VmqsbDtgcy4jNwHMSzf0Rl346rIoBjtZwf-DX0V6tbn\" frameborder=\"0\" scrolling=\"auto\" allowfullscreen style=\"display: block;margin-left: auto;margin-right: auto;max-width: 100%;\"><\/iframe><\/p>\n\n\n\n<p>Tesla ($TSLA), which substantially beat Q1 quarterly earnings expectations last week, has been forming the handle portion of a bullish cup and handle chart pattern for the past three weeks.<\/p>\n\n\n\n<p>As such, we are now stalking $TSLA for potential buy entry in the <em>Wagner Daily<\/em> model portfolio if the stock breaks out to the upside from this reliable chart pattern.<\/p>\n\n\n\n<p>Check out the $TSLA <a href=\"\/blog\/cup-and-handle-pattern\/\" target=\"_blank\" rel=\"noreferrer noopener\">cup and handle pattern<\/a> on the daily chart below:<\/p>\n\n\n\n<figure class=\"wp-block-image is-resized\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/i0.wp.com\/morpheustrading.com\/blog\/wp-content\/uploads\/2020\/05\/TSLA.jpg?fit=640%2C375&amp;ssl=1\" alt=\"\" class=\"wp-image-6624\" width=\"580\" height=\"339\" title=\"\" srcset=\"https:\/\/morpheustrading.com\/blog\/wp-content\/uploads\/2020\/05\/TSLA-110x64.jpg 110w, https:\/\/morpheustrading.com\/blog\/wp-content\/uploads\/2020\/05\/TSLA-300x176.jpg 300w, https:\/\/morpheustrading.com\/blog\/wp-content\/uploads\/2020\/05\/TSLA-768x450.jpg 768w, https:\/\/morpheustrading.com\/blog\/wp-content\/uploads\/2020\/05\/TSLA-1024x600.jpg 1024w\" sizes=\"auto, (max-width: 580px) 100vw, 580px\" \/><figcaption class=\"wp-element-caption\">$TSLA cup with handle chart pattern<\/figcaption><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">Deeper Than Normal Cup<\/h2>\n\n\n\n<p>Upon closer analysis of this pattern, we noticed the depth of the left side of the &#8220;cup&#8221; is about 60% deep (range from the Feb. 2020 high down to the March 2020 low).<\/p>\n\n\n\n<p>A cup with a depth of 50% or more is usually not ideal because the stock must rally at least 100% just to get back to the prior high (which becomes a significant area of resistance). <\/p>\n\n\n\n<p>However, the cup depth of 60% is only two times greater than the NASDAQ&#8217;s plunge of 30% during the same period. Within the context of the recent, pandemic-driven market sell-off, it&#8217;s not bad.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">$TSLA Buy Entry Setup<\/h2>\n\n\n\n<p>The &#8220;handle&#8221; has been forming for nearly four weeks, Tesla may soon be ready to breakout to new highs&#8211;on the heels of its impressive earnings report.<\/p>\n\n\n\n<p> We&#8217;re watching $TSLA for two possible buy entry points:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>Buy $TSLA on a rally above the $800 level (above the May 5 high). <\/li>\n\n\n\n<li>Buy $TSLA on a potential pullback to near-term support of its 10-day moving average ($754 area). A pullback entry would allow for a bit more wiggle room if the price hits resistance at the $900 to $1,000 area and then stalls.<\/li>\n<\/ol>\n\n\n\n<p>If Tesla triggers our buy entry, we will be setting a protective stop below the 20-day moving average and support of prior low from May 1.<\/p>\n\n\n\n<p>Existing subscribers of <em><a rel=\"noreferrer noopener\" aria-label=\"The Wagner Daily (opens in a new tab)\" href=\"https:\/\/morpheustrading.com\/services\/swing-trade-alerts\" target=\"_blank\"><strong>The Wagner Daily<\/strong><\/a><\/em> should check the &#8220;Watchlist&#8221; section of today&#8217;s report for our exact trigger, stop, and target prices of this hot $TSLA swing trade setup.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Tesla ($TSLA) is on our radar for potential breakout buy entry in the coming days. Here&#8217;s why&#8230; Tesla ($TSLA), which substantially beat Q1 quarterly earnings expectations last week, has been forming the handle portion of a bullish cup and handle chart pattern for the past three weeks. As such, we are now stalking $TSLA for [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_links_to":"","_links_to_target":""},"categories":[3],"tags":[],"class_list":["post-6622","post","type-post","status-publish","format-standard","hentry","category-stock-trading-strategy"],"_links":{"self":[{"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/posts\/6622","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\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/comments?post=6622"}],"version-history":[{"count":10,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/posts\/6622\/revisions"}],"predecessor-version":[{"id":15768,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/posts\/6622\/revisions\/15768"}],"wp:attachment":[{"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/media?parent=6622"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/categories?post=6622"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/tags?post=6622"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}