$Tesla Motors(TSLA)$ broke all time high. In the previous article, I highlighted the historical resistance levels of Tesla and said:
The price is nearing the $358 resistance, a level aligned with prior highs. A break above this could signal a continuation of the uptrend, but failure to breach may result in consolidation or reversal
Tesla closed at $424 last night, surpassing its previous all-time high of $413 – marking a significant breakout!
Notably, once Tesla breached the $358 resistance, momentum surged, propelling the price toward the $420 level.
If one had traded a long DLC of Tesla, this 3x Long Tesla DLC ( $TESLA 3xLongSG261006(TSYW.SI)$ ) has more than tripled in value since its inception [Miser]
This remarkable surge since Oct has generated a year-to-date gain of +76% on tesla shares while the 3x Long DLCs (TSYW) has gained +292% from its issue price of $5 to now trading around ~$19 over the last 49 trading days. Conversely, the 3x Short DLC (TSXW) has lost -92.9% in the same period. Remember gains and losses are magnified!
Tesla Long DLCs: $TESLA 3xLongSG261006(TSYW.SI)$
Tesla Short DLCs: $TESLA 3xShortSG261006(TSXW.SI)$
TESLA Long DLC cumulative performance
Tesla key levels
If Tesla retraces downward, the previous highs at 365 and 385 could act as support levels. These levels, previously resistance, may now attract buying interest as traders view them as strong price zones to hold the stock’s momentum.
This is because, when a stock breaks above its previous high, that level often turns into a support zone. This occurs because traders who missed the breakout may buy if the price retraces to that level, reinforcing it as support. It reflects a shift in market sentiment from resistance to buying strength.
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