Tesla has been on a tear lately but it seems like it is losing steam, In fact it is showing some weakness in early morning trading. This is setting up a move that could be the perfect signal of a great trade.
Take a look at the chart:


After looking for support at its 10 day moving average it is sliding further and setting up a nice bearish MACD crossover. We have talked about the bullish MACD crossover before and as you might expect this is exactly the opposite. Where the bullish MACD suggests a call option, the bearish version would create a climate for buying a put option.

This should be a quick move so the July puts with a 240 strike could be a consideration. They are at 9.56 now so we will keep an eye on them to see how this example of a bearish MACD crossover plays out.
Keep learning and trade wisely,
John Boyer
Editor
Market Wealth Daily
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