To The Moon

After eight straight gains, Tesla stock is down. There is no smoking gun to blame Friday's drop on. Shares just hit $200 too soon, driven by everything from stock chart patterns to options traders to ballooning investor expectations heading into a big event.

Tesla stock has dropped 5.8% Friday, while the S&P 500 is little changed and the Nasdaq Composite is off 0.8%.

It's a big drop, but gains have been something to behold. Coming into Friday trading, Tesla (ticker: TSLA) stock had risen for eight consecutive days and 14 of the past 15. Shares were up 24% over the eight-day span and 63% over the 15-day span.

Good News: Tesla (TSLA) has raised the base price of its Model Y cars by 0.8% to 261,900 yuan ($38,484) in China, after the company cut its prices at the beginning of the year, according to Reuters.

According to the price information listed on the company's Chinese website, the automaker raised the price of its rear-wheel drive version of the Model Y by 2,000 yuan from 259,900 yuan.

Bad News: The Biden administration to release final rule next week on EV charging standards as part of $7.5B to electrify US roads.

New rules will force Tesla to unlock superchargers and adopt competition standards or forgo federal fundings.

Ugly News: Head & shoulders chart pattern breakdown to new low this week. Could see more downside with CPI readings and the federal funding on Tesla supercharger in the week ahead.

All the data points are a warning that the Tesla rally can run out of steam. Market technicians have also pointed out that Tesla stock was due for a pause, running into resistance at about $200 a share. 

Overall, about 65% of analysts covering Tesla stock rate shares Buy. The average Buy-rating ratio for stocks in the S&P 500 is about 58%. The average analyst price target is about $194.

Been waiting to short below 200 from the trade idea posted the day before. A nice gain of 47% riding the downtrend with the bearish flow on Friday. Setting up for put below 190 next week. Manage your risk with stops trading a volatile week ahead.

Follow me for more trading ideas & strategies to ride the market daily with profits! 🤑

@TigerStars

@CaptainTiger

@MillionaireTiger

@Daily_Discussion

@Tiger_SG

@TigerPM