The price of tesla was in a downtrend since peaking at its all time high back in November of 2021. It broke out of that and then some....
Moonshot
That trend had quite a wide channel as you can see on the daily chart above.
Since piercing through that descending channel price has pushed even higher, 25 points above the breakout level. The price action has been overbought for a bit now.
Price is pulled away from the 10 day moving average for a hot minute now and stochastics has been above the 80 level for a month.
This doesn't mean the stock has to pull back, but I would also say I'm not aggressively looking to add here. If anything, maybe I do a little profit taking and look to add back when there is a dip to work of the overbought conditions.
The above idea is fine, so long as the stock doesn't run too far higher. There is the rub, you just never know!