So we get Tesla after the close today and here is a quick look at the chart currently. We can see the down trend channel has been in place since Q4 2021 and the subsequent break now of that $222 trend line support:
What is also interesting is that we are still well over the $101 lows back in early 2023 and the overall bull tone in the Nasdaq doesn’t seem to be helping this stock here. When we look at options today for expiration on Friday, we have the $210 straddle at $15 indicating a 7% breakeven move. The big levels are $210 and $200 for the puts with open interest at 26k and 25k respectively and on the call side we have over 111k in open interest from $210 to $220 so its obvious where all the sentiment is here.
Given the options set up we would suspect that the upside is limited here post earnings and we are looking at more of a test down to $200 potentially, but a 5% move either way here would seem to be the cap barring some blow out or disaster.
Also and we will touch upon this more later today is the PBOC is once again being proactive with the stimulus as they announced a coming reduction in the RR Rate which is the required reserve rate for the banks there. We already know they are tossing nearly a $1T dollars over the last 4 months and now will lower the RRs to hopefully stoke some incentive to buy equities there…
Ok more to come later on.
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