TSLA had an incredible run-up around November 2024 and ended up giving it all back on some broader market macro declines and volatility spikes. It traded down over -55% (quite an extended decline) and landed right below the 200-day moving average.
Instead of continuing lower with a bear flag, we got a quick reversal back above the 200MA today. I can see trades continuing to work over the 200MA. Let’s watch.
Comments/Lessons/Wisdom:
- Risk management is paramount.
- It never hurts to take profits on a good run.
- Bear flags don’t necessarily lead to lower prices and it’s always better to respect what markets want.
- Big declines can lead to large bounces. In this case, we declined over -55% and saw an over 10% one-day bounce (yesterday on 3/24/25).
