Don’t Trust Tesla’s Latest Rally

[Trading With Larry Benedict]( Larry’s Note: Tonight, at 8 p.m. ET, I’m coming to you with my [Shockwave Summit](. There, I’ll explain why I’m expecting rough waters ahead… 2023 promises to bring more choppiness to our portfolios. And on March 17, a shockwave of volatility is going to hit the market. If you’re prepared, though, it could be one of the best money-making opportunities this year. So tonight, I’ll share my favorite ticker for the volatility we’re about to face… and explain my strategy for profiting during this shockwave. To make sure you don’t miss out, please [RSVP to attend instantly by going right here](. Don’t Trust Tesla’s Latest Rally By Larry Benedict, editor, Trading With Larry Benedict Tesla (TSLA) felt the full pain of the Big Tech selling last year… After reaching an all-time high in November 2021, TSLA spent 2022 stuck in a prevailing downtrend. Even when the broader market found a base in October, TSLA continued to plummet. It lost around two-thirds of its value in the last four months of 2022. After that brutal sell-off, however, TSLA looked oversold coming into 2023… and ready for a bounce. TSLA then ripped higher, gaining a massive 100% in the space of a month. But that rally put TSLA into overbought territory. It has drifted lower since… and today, I want to see what’s coming next for this volatile stock… Recommended Link [Market Wizard crushed the market in 2022. What’s he got in store for 2023?]( [image]( Market Wizard Larry Benedict crushed the market in 2022… He delivered a perfect track record to his One Ticker Trader readers, going 11-for-11. Previously, he went 20 straight years on Wall Street without a single losing year. And when the market plummeted 37% in 2008, he delivered 23% returns… Now he’s sharing an over-the-shoulder “demo” of his winning strategy in action. He calls it the One Ticker Retirement Plan… And it takes less than 10 seconds to demonstrate. [Watch it here.]( -- Breaking Through Resistance On the chart below, you can see TSLA’s steady downtrend in 2022… TSLA made lower highs in April (‘A’) and August (‘B’), as well as back in January. The falling 50-day moving average (MA – blue line) also shows that downtrend. Take a look… Tesla (TSLA) [Image] Source: eSignal After topping out at both ‘A’ and ‘B,’ there were two patterns that confirmed TSLA’s downtrend… - The Relative Strength Index (RSI) formed an inverse ‘V’ (red circle) from overbought territory (upper grey dashed line) and started tracking sharply lower. The RSI then fell through support (green line) and got stuck in the lower half of its band as TSLA’s down move accelerated. - The 10-day MA (red line) bearishly crossed below the 50-day MA with both then trending down. TSLA’s downtrend ended only when the RSI formed a ‘V’ in oversold territory (lower grey dashed line) in late December (red arrow). [The One Ticker Retirement Plan Over the Shoulder Demo Now Available]( TSLA’s strong rally then began when the RSI tracked higher toward resistance. That rally accelerated when the RSI broke firmly into the upper half of its range. And the 10-day MA crossed back above the 50-day MA, which added to the bullish sentiment. However, the RSI formed an inverse ‘V’ from overbought territory – a repeat of the previous patterns in August and April. And TSLA’s rally petered out at ‘C’… Tesla (TSLA) [Image] Source: eSignal Since then, TSLA has continued to drift, and the RSI has tracked lower. So now, with the RSI testing support once again, what can we expect from here? Free Trading Resources Have you checked out Larry's free trading resources on his website? It contains a full trading glossary to help kickstart your trading career – at zero cost to you. Just [click here]( to check it out. A Broader Downtrend For TSLA’s rally to resume, we’ll want to see the RSI hold support. The longer it can stay in the upper half of its range, then the stronger any further rally could be. We’d also want to see the 10-day MA (which has recently been drifting down) turn higher and start to accelerate above the 50-day MA again. However, right now it all hinges on the RSI… If the RSI breaks down through support, then this current pullback will gather momentum. A prolonged stay in the RSI’s lower range could then be the start of another major leg down. That would add further impetus to TSLA’s broader long-term downtrend with it making lower highs (‘A,’ ‘B,’ and ‘C’) and lower lows (in May and January). And a continuation of this broader trend could then see TSLA take out its January 2023 low. Regards, Larry Benedict Editor, Trading With Larry Benedict Reader Mailbag In today’s mailbag, a member of [The S&P Trader]( thanks Larry for his trade recommendations… I just wanted to thank Larry for all his hard work! It's really paying off for his subscribers. I appreciate the video updates and transparency on winning and losing trades. I subscribe to three of his services. The S&P Trader has been right-on recently, and I have been amazed at the daily profit I have been able to make. I have tried many trading subscriptions and strategies over the years, but only The S&P Trader has paid off BIG and quickly for me. I can't thank Larry enough for his wisdom and guidance. He is a stock trading savant! – Mary H. Thank you for your thoughtful comments. We look forward to reading them every day at feedback@opportunistictrader.com. IN CASE YOU MISSED IT… [30-Second Demo Reveals Why This Tiny Company Is A Better Investment Than Tesla]( Tesla is an electric car company, right? Not for long… Details of [Elon Musk’s future plans for Tesla]( recently got out. And get this… Tesla is headed in an entirely new direction. Musk says it’s “probably [worth] several times that of what the car business is per year”… and it could soon be 50% of Tesla’s business. That’s because [this new trend is worth $130 trillion]( according to Forbes. But Musk isn’t the only billionaire gunning for all this money. Five billionaires are backing a tiny company that could beat Tesla to the punch. It’s an epic billionaire battle with a $130 trillion grand prize. Former Goldman Sachs executive Nomi Prins recently explained what’s going on [in this video.]( It includes a 30-second demonstration that reveals why these 5 billionaires are betting against Musk, and backing this tiny company that trades for just a few bucks instead. [Click here to watch the 30-second demo.]( [image]( --------------------------------------------------------------- Get Instant Access Click to read these free reports and automatically sign up for daily research. 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