How I Traded It: TSLA – Rebuilding a Position Through Volatility and Noise
A swing trade built from support, scaled with structure, and shaped by sentiment extremes
This is a breakdown of a swing trade in TSLA that started from a deep pullback and emotional lows. It’s still active, but the structure, execution, and context already offer a full case study in disciplined trading.
🔍 The Setup
By mid-March 2025, TSLA had endured a prolonged downtrend by falling more than 50% from recent high prices, bounced slightly, and was back to retest a key horizontal support zone near $233, the same level that anchored the earlier March bounce.
There was no reclaim of anchored VWAP. No moving average crossover. No breakout.
This was early-stage compression at a potential turning point—offering a well-defined risk level, not a confirmation signal.
TSLA tests horizontal support and moves to the 8-day MA. Structure compresses, volume fades.
🧠 Sentiment Context
While the chart was basing, sentiment was in the gutter:
Political Noise: Minnesota Governor Tim Walz publicly mocked the stock’s decline, prompting direct replies from Elon Musk himself.
Activism & Boycotts: The “Tesla Takedown” movement gained traction, urging the public to divest from the company amid political backlash.
Bearish Coverage: J.P. Morgan slashed its TSLA price target, citing delivery concerns.
Retail Behavior: Despite the headlines, individual investors bought aggressively—over $7B in inflows across just 12 sessions.
This combination of deeply negative narrative and technical price support helped build contrarian conviction in the trade.
📊 The Entry
The position was initiated on March 20, near $233, as TSLA held the slight, recent gains and started pushing the 8-day MA higher. It was a starter entry, with defined risk just below the lows. Price had not reclaimed anything yet—but I didn’t need to wait for confirmation for a tier one sized entry.
Position initiated—no reclaim yet, just structure and risk.
🧱 The Position Build
Here’s how the position evolved:
March 20: Entry #1 (starter) near support with multiple attacks on the 5-day MA
March 22–24: Trimmed a portion quickly into the bounce
March 31: Added back to the position—stopped out the same day
April 1: Repurchased lower—another test of support
April 30: Major add on clean test of 5-day MA (30-min chart), expanding near peak size
May 13: Small trim into strength near 323
June 4: Still holding a substantial position
Final build triggered on intraday 5-day MA hold—position neared full size.
✂️ The Exit(s)
Trimmed quickly after the initial add in late March
Stopped and re-entered with discipline—no overcommitment
Minor trim near 323 on May 13
Still holding the bulk of the position with price compressing again at higher levels
Aggressive trim early. Tactical trim later. Core still active.
📈 The Current Chart
As of today, June 4, TSLA is back to test the $331 level for potential horizontal support.
Pivot low from May 22
21-day moving average
Initial reaction bounce
A Retest at higher support. Structure still intact.
🧠 The Mindset
This trade required patience, confidence, and the ability to re-enter after being stopped.
The original thesis—technical support + extreme sentiment—remains valid.
But I’m also reviewing the trim at $360+ that didn’t happen. It was a good spot, but I let it go.
Now, I’m watching for either:
Renewed strength, which would show up as:
Holding above this pivot low and the 21-day MA
Recapturing the WTD AVWAP ner $342
Moving back above the 5-day MA
If all that transpires, I can continue to hold full size and trail the protective stop up from underneath.
Or, broken support. If this support level gives way again, that will be my signal to cut the added shares loose and get back to a smaller position.
We shall see.
🧩 Lessons + Process Takeaways
Support with defined risk works—even without confirmation
A Tiered position system lets you manage uncertainty
Sentiment extremes often signal asymmetric opportunity
Being stopped is fine—re-entry matters
Missed trims = data, not defeat
📝 Final Thoughts
This wasn’t a high-conviction all-in trade. It was a measured build through volatility, anchored in price structure and reinforced by sentiment extremes.
It’s not over yet. But the process is already paying off.
The plan is set, and the chart continues to develop. Whatever happens, will happen.
If you find this “How I Traded It” format valuable, let me know with a comment, reply, or share. If the response is good, I’ll do more setups and breakdowns soon.
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The Inner Circle is a Virtual Trading Floor (VTF) at T3 Live. I’ve been working and trading with this group since 2022. You may have noticed the logo in the watermarks on my charts.
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The Disclosures
***This is NOT financial advice. This is NOT a recommendation to buy, sell, or trade any security. The content presented here is intended for educational purposes only.
