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$Tesla Motors(TSLA)$ has formed a cup and handle pattern, a bullish continuation setup that often signals potential for further upside once confirmed.
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The cup represents a long consolidation and recovery phase, while the handle shows a short-term pullback before potential breakout.
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Immediate resistance lies near US$471, which marks the previous high and the neckline of the cup pattern.
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Support is seen around US$418, which forms the lower boundary of the handle.
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A confirmed breakout above US$471 would complete the cup and handle pattern, potentially signalling the start of a new upward leg.
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If the breakout occurs with strong volume, it would further validate bullish sentiment.
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Until the breakout happens, the price may continue consolidating within the handle range of US$418–450.
Scenario 1 — Potential Upside Confirmation
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If Tesla closes above US$471 with positive momentum, traders expecting short-term strength may refer to a Long DLC ( $TESLA 3xLongSG261006(TSYW.SI)$ ) as a way to gain leveraged exposure to the underlying move.
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A Long DLC rises in value when the underlying share price increases on the same day.
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However, traders should note that DLCs are short-term trading instruments and their returns are based on daily performance, which means holding them over multiple days may result in compounding effects.
Scenario 2 — Pullback or Rejection at Resistance
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If Tesla fails to break above US$471 and price reverses lower, traders anticipating short-term weakness may refer to a Short DLC ( $TESLA 3xShortSG280330(RLSW.SI)$ ), which moves in the opposite direction of the underlying stock.
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A Short DLC increases in value when the underlying share price falls on the same day.
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Disclaimer:
This document is not an offer or solicitation to buy or sell, nor financial advice or recommendation for any investment product. This document has been published for general circulation only.
This advertisement has not been reviewed by the Monetary Authority of Singapore. This post is sponsored by Societe Generale, Singapore Branch. The content of this article does not form part of any offer or invitation to buy or sell any daily leverage certificates (the “DLCs”), and nothing herein should be considered as financial advice or recommendation. The price may rise and fall in value rapidly and holders may lose all of their investment. Any past performance is not indicative of future performance. Investments in DLCs carry significant risks, please see dlc.socgen.com for further information and relevant risks. The DLCs are for specified investment products (SIP) qualified investors only.
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