TSLA trades in a range-bound parallel channel; buy dips and sell rallies.

Tesla reverses yesterday's gains. Basically, this is what happened here. Yesterday, Elon was talking enthusiastically about all the amazing things happening at SpaceX and Tesla.

But today, the regulatory body that oversees autonomous taxis came out and said that Tesla's autonomous taxis may not work well or may not meet regulatory standards because they do not have a steering wheel.

So again, whether you support it or not, it doesn't really matter. This put pressure on Tesla's stock today, which had made a significant rise yesterday, but reversed most of that rise.

In fact , the opposite of all that is true today, and even more so. As you can see again, this was yesterday. A big jump yesterday, but it has fallen back today and is retreating inwards.

Now, Tesla is still in an uptrend in the short term, but we are nevertheless within this larger parallel channel. And again, as I told you in the game plan, any downward movement here, I buy Tesla. Any upward movement up here, I sell it short.

Why? Well, simply because that's what the graph tells us. Each time we reach the bottom side, there is a large upward movement. When we reach the upper side, it is an excellent selling opportunity towards the downside.

Buy it there, sell it there, back out, sell it again, sell it again, all the way down to that point.

But look at the size of the gains Tesla has made if we trade on these trend lines, whether as a buying opportunity or for short selling. It's amazing range-bound trading on Tesla stock.