Trade of the week: long Tesla
We would like to go long Tesla shares around $415.00 with a stop loss below the early January low at $373.00 and an upside target just below the $500.00 mark.
(Partial video transcript)
Our first trade of 2025
Axel Rudolph: Hello and welcome to this year's first "Trade of the week" on Monday, the 6th of January 2025. Now, what we're going to try this year is to better our performance from last year, up 31%, risking 2% of capital. That's something we're going to keep on doing in 2025 as well. And our first trade that I would like to look at is Tesla.
And you can see on my daily chart here that the Tesla share price is currently trading around $416.00, up from last week's low, which was a $373.30 on this Daily Financial Bet (DFB) here. And basically this for me is a line in the sand. As long as we stay above there, you can see we are still in an uptrend, a series of higher highs, higher lows. And what we've probably seen is an ABC Elliott wave zig zag correction, which would indicate that we would most likely be heading towards new record highs towards the $500.00 mark or so.
So for those technical reasons, I would like to go long the Tesla share price, but also, because Elon Musk is obviously part of the new government, presided over by President Trump, as we'll see later in this month. So that, also because he's part of the government, might help the Tesla share price. And this is what's triggered the huge advance in Tesla's share price towards the end of last year.
So coming back to our trade, we need to place a stop loss somewhere. Our view is probably incorrect if we fall below last week's low at $373.30. So what we could do is, go long now with a stop below that low and an upside target just below the psychological $500.00 mark. This week's "Trade of the week" is to go long the Tesla share price with a stop loss below the early January low at $373.00 and an upside target just below the psychological $500.00 mark.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
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