$TSLA Breakout: 3 Potential Buy Entry Points Now

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Tesla recently reported record earnings, triggering an explosive rally to new all-time highs. Here’s why you’re not too late if you missed the breakout.

Household name Tesla ($TSLA) delivered record earnings results last week, sparking a massive, post-earnings breakout on October 25.

That day, $TSLA broke out from an eight-month base, with an explosive gap +12% higher.

Volume surged 240% higher, confirming the breakout and institutional accumulation.

The breakaway-like gap up $TSLA formed on Oct. 25 was a clear buy signal, and should lead to higher prices over the next few months (if overall market conditions remain bullish):

Don’t fret if you missed the huge $TSLA breakout entry–Morpheus has you covered.

Just continue reading to see three alternate buy points into $TSLA.

3 potential buy points into $TSLA

The most obvious buy point was the monster gap on October 25, but there are always alternate entry points if you miss a stock breakout.

Here are three ideal entry points to monitor for potential $TSLA buy entry.

1. Above the high of the gap up day (Oct. 25)

After a stock gaps up sharply from a valid basing pattern, a move above the high of the gap up day is a valid buy entry on strength.

Some of the stronger gap ups often follow through to build on their gains without much of a pause.

A move above the high of the gap up day is buyable because bullish momentum remains strong in these cases.

2. Pullback to psychological support of $1,000

When discussing to support and resistance, we are typically referring to technical levels on a chart that are expected to provide price support or resistance.

However, large round numbers often act as “psychological” support or resistance levels as well.

Before Tesla’s recent breakout, I occasionally heard typical investors mention things like, “Tesla is going to break $1,000.”

Even though $1,000 was never an actual technical resistance level you can see on a chart, it was “psychological resistance” because the number meant something in investors’ heads.

Now that $TSLA has broken above $1,000, investors are likely to view any pullback to the $1,000 area as a “buying opportunity” for the same reason.

The $1,000 level becomes support because of a self-fulfilling prophecy caused by the masses thinking the $1,000 mark actually matters.

As such, consider buying $TSLA on any pullback to the $1,000 “psychological support” level.

The potential entry points above the October 25 high or a pullback to the $1,000 level are shown below:

Press chart to view full-sized image

3. Pullback to 20-EMA on hourly chart

After an explosive rally, the first pullback to touch the 20-period exponential moving average on the hourly timeframe provides a relatively low-risk pullback entry point.

Moving averages on the daily charts are more significant and closely followed by institutions.

However, the strongest stocks in the market often do not retrace back down to their 10 or 20-period moving averages for many days or weeks after breaking out.

As such, we use the shorter-term hourly timeframe to look for a buy entry on explosive breakout stocks;

Press chart to view full-sized image

MTG members are already long $TSLA because The Wagner Daily stock portfolio bought the October 25 breakout.

But if you’re not yet a member, consider any of the three alternate buy entries into $TSLA to capture the next big run.

Become a member now to be instantly alerted to trade details of the next explosive stock pick we buy.

If you’re into crypto trading (or want to be), be sure to also check out Morpheus Crypto for the hottest crypto trade signals and crypto trading education.

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