Tesla is one of the most profitable stock to trade options when traded correctly due to its high volatility compared to its share price.
Today's incredible bullish run from the bottom can indicate the potential end of the recent bearish market. When having a bullish market sentiment, I like to find a good call-option setup and vice versa.
Looking at the daily chart above, there are three things to focus on:
Green hammer candle formation from today
Bounce from the red trendline
Bullish RSI divergence
Furthermore, looking at the 4-hour candle, we can see that the penultimate candle and the one before are not only bouncing from the trendline but also forming a tweezer bottom and a bullish engulfing.
With these technical analyses and the bullish market sentiment, I believe that TSLA is ready for the next bullish phase. This can be short-term or medium-term swing trading depending on when you want to take the profit.
For medium-term swing trading, stop losses will be below $850, which is yesterday's low, and the first price target will be around $1100.