Ian Cooper’s Stock Pick of the Week

Chart of Day: Tesla (TSLA) Starting to Accelerate Higher
 

Just last week, we highlighted opportunity in DraftKings (DKNG), as it traded around $39.20. 

“While the DKNG stock is a bit stretched at the moment, we believe it could push even higher heading into the Super Bowl, and heading into March Madness in just a few weeks. Helping, DKNG is now active in more than half of all U.S. states.”

Today, DKNG is up slightly at $41.74.

As for new opportunities, take a look at beaten-down shares of Tesla (TSLA).  After gapping from about $210 to less than $180, the stock appears to have bottomed out. From its current price of $185.10, we’d like to see it initially refill its bearish gap at $210. Helping, Cathie Wood’s ARK Invest just bought another 62,100 shares of TSLA this week.

Also, if you look at a one-year chart of TSLA, you can see it’s technically oversold.  It’s also over-extended on RSI, MACD, and Williams’ %R.  Plus, if you look back over the year, you can see that each time these three indicators become this over-extended, TSLA begins to pivot higher.  We’re hoping to see a similar, positive move this time around, too.

Ian Cooper is an experienced trader who uses a combination of technical, fundamental, and news analysis to help individual investors grow their wealth. Ian’s Premium Options Strategies

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