TSLA Short Trade Analysis and Execution Plan
Current Price and Key Levels:
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Current Price: $286.35
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Today’s VWAP: $288.51
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Today’s VAL: $287.96
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April 25th VAH (Key Short Entry Level): $286.87
Entry Strategy:
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Ideal Short Entry: Near $286.87 (April 25th VAH)
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Stop Loss Placement:
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Conservative: $288.92 (Above today’s VWAP)
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More Protective: $289.78 (Above today’s VAH)
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Note: Adjust position size accordingly if choosing a wider stop.
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Partial Profit Targets:
Initial Profit-Taking (Total 40%):
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10% at $285.95 (Near POC of April 28th)
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10% at $285.36 (Just above yesterday’s VWAP)
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10% at $283.32 (Above yesterday’s VAL)
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10% at $278.87 (Above April 28th VAL & VWAP of April 27th)
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Risk Management: Once at least three of these targets are reached, move stop-loss to entry.
Swing Profit-Taking (Remaining 60%):
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20% at $260.13 (Above April 24th VAH)
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20% at $254.57 (Coinciding with April 24th VWAP)
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Final 20% at $238.00 (Above POC of April 22nd)
Risk vs Reward Assessment:
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The outlined strategy provides multiple stages for risk mitigation through partial profits.
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Progressive lowering of exposure through partial profit-taking and adjusting stop-loss to break-even after initial targets enhances the overall risk-reward ratio.
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This structured approach significantly reduces downside risk while maximizing potential gains on extended downward momentum.
Conclusion:
This strategic short setup for TSLA emphasizes careful risk management and disciplined execution, balancing immediate profits with longer-term swing potential. This is not financial advice. Trade at your own risk only. Visit ForexLive.com for additional views.
This article was written by Itai Levitan at www.forexlive.com.
