Earlier on $Tesla Motors(TSLA)$, I wrote that:
Short DLCs (e.g., $TESLA 3xShortSG261006(TSXW.SI)$ or $TESLA 3xShortSG261204US$(TSUW.SI)$ ): Aim to gain when the underlying stock declines. May be used tactically if TSLA breaks below US$330, with downside potential toward US$290.
Tesla plunged from $330 to low around $280 in one day.
The levels written above played out well.
Updated analysis of Tesla
Tesla (TSLA) – Technical Analysis
Tesla is currently trading around US$310, a level of interest for multiple technical reasons:
-
Historical Support Turned Resistance: The US$310 zone previously acted as a key support in late 2023. After being broken in recent months, it is now acting as resistance, consistent with the principle of role reversal.
-
Fibonacci Retracement – 38.2% Level: The 310 level also coincides with the 38.2% retracement of the major decline from US$368 to US$274, adding technical confluence to this resistance zone.
-
Bearish Trigger Below US$300: If the price fails to hold and closes back below US$300, it may indicate renewed bearish pressure, with the potential to revisit lower support levels.
Using DLCs for Short-Term Exposure to Tesla
Daily Leverage Certificates (DLCs) offer structured exposure to the daily price movements of Tesla with fixed leverage. Based on the current technical setup:
-
If the price remains below the US$310 resistance and sebsequently closes back below US$300, this may indicate continued short-term weakness. In such scenarios, short DLCs (e.g. $TESLA 3xShortSG261006(TSXW.SI)$ ) are designed to deliver amplified returns when the underlying stock declines.
-
Conversely, a sustained breakout above US$310 could suggest potential for further upward movement toward US$321–US$332. Long DLCs ( $TESLA 3xLongSG261006(TSYW.SI)$) aim to reflect a leveraged return when the underlying stock rises.
Key Considerations:
-
DLCs are intended for short-term trading due to their daily rebalancing feature.
-
Performance may differ from expected leverage over multiple days.
-
Investors should assess their risk appetite and fully understand the product structure and associated risks before trading.
Hit the follow button to stay updated! I post valuable trading and investing insights every week—don’t miss out on being the first to know!
For more information about DLCs, visit https://dlc.socgen.com/en/education/handbook
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.
Comments