Tesla (TSLA) has been sliding, and if you’re watching the price action closely, you’re probably wondering whether this is a buy-the-dip moment or if there’s more pain ahead.
With shares recently testing the $295 level, I’ve got my next dollar cost average (DCA) level set at $285 (where it’s at this afternoon).
But is it time to step in, or should traders wait for a deeper pullback?
A Controlled Approach to Tesla’s Drop
Tesla’s been known for its volatility, and that hasn’t changed. I’m taking a measured approach by allocating small amounts at each level. My next buy zone is $285, and I might consider rolling it even lower.
These are small positions — $1,000 here, $1,500 there — which help average my overall entry toward the $300 range.
At this level, Tesla is still well above my assignment price of $255 on an open options position. If the stock continues to sell off and I get assigned, my effective cost basis would be around $247.
That’s a price I’m comfortable working with, especially if I see a path to repairing the trade.
What Could Push Tesla Even Lower?
The broader market has been choppy, and momentum stocks have taken a hit. If the sell-off continues, Tesla could test lower support levels. The options chain shows the market pricing in a potential move down to $260 or $255.
If that happens, I’ll be looking for ways to adjust my positioning.
At this point, I’m not in a rush to load up aggressively. Small, strategic buys make sense, but if Tesla breaks below $255, I’ll reassess and see where the next level of demand comes in.
The key is having a plan before the market forces you into one.
For now, I’m keeping an eye on my levels, staying patient and making sure every move fits into a bigger strategy. If Tesla rips higher from here, great. If it sells off further, I’ll be ready.
I’ll see you in the markets.
Chris Pulver
Chris Pulver Trading
Follow along and join the conversation for real-time analysis, trade ideas, market insights and more!
-
- Telegram:https://t.me/+av20QmeKC5VjOTc5
- YouTube:https://www.youtube.com/@FinancialWars
- Twitter:https://x.com/realchrispulver
- Facebook:https://facebook.com/therealchrispulver
Important Note: No one from the ProsperityPub team or Chris Pulver Trading will ever contact you directly on Telegram.
*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk.
P.S. The Secret Behind these Weekly $1,000 Payouts
A majority of Americans now believe inflation is back. But the “Weekly Windfalls” is punching back, targeting one ticker at the same time every week.
See the ticker behind our 18-trade win streak… aiming for $1,000 every week (with a $5k starting stake).
