Gap Addict

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Tesla (TSLA) has had a couple of very wild days. On a cash-session basis, Tuesday’s lows were actually lower than Monday’s lows. It trimmed about $50 off its big gap-up Monday gains.


Of more interest is the gaps, since Tesla seems to have quite a reverence for them. The meaningful gap from its price peak, marked with an arrow, was at price value $1208. Tuesday’s high was almost precisely $1208 (the official data isn’t out yet, but my own data source shows the daily peak was literally two pennies beneath the gap).


What I think this means is that should the stock start to weaken again, the next meaningful gap is the one defined by the high price of December 31st: that is, the price value of $1082. So that’s our range for now: 1082 on the bottom and 1280 on the top. Coincidentally ,that makes sort of a numeric anagram.