Traders Ask- Where Do I Buy? (Support Play- TSLA)

BellaMike Bellafiore's (Bella's) BlogsLeave a Comment

I received this email from a reader:

Hi Mike,

I caught your stocktwits segment on Sunday (I believe) covering the TSLA IPO. Now… as I’m watching it drip lower I’m wondering at what level if at all would GS or the underwriter support it? Where would you look to get interested in buying? 18 looks like the line of defense for buyers.

Any insight would be greatly appreciated.

BTW- I attended the stocktwits panel in Pasadena. Unfortunately was not able to personally meet you as you were surrounded by people after the program.


SMB Responds:

Steve bought 18.03 and I bought 18.13 into the first downmove to 18. We both kicked it out on the way up to 19. I am still a little long as I write. For me 18, 17.55 and then 17 are our support levels for TSLA. 17 is our absolute line in the sand.

18 was the level TSLA broke out from the day of its IPO. So that is our first important support level. The more you love a level the more you buy near this level, the higher you are willing to buy near the support, the more subsets of support plays in your playbook you will execute, the more quickly you scale into a position.

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