$TSLA – Wedge Breakout with Rotation Potential

TSLA – Breaking Out of a Big Wedge After Earnings Reversal
Tesla (TSLA) just broke its wedge pattern after a strong post-earnings recovery, and the price action says a lot about where sentiment is shifting.

🔹 Earnings Flush → Strong Absorption

Earnings reaction was ugly — big gap down and heavy selling.

Since then, TSLA has been shrugging off negative news — sales data, guidance cuts, analyst downgrades — all absorbed without breaking down.

This tells me buyers are quietly accumulating.

🔹 Rotation Narrative

The rest of the Mag 7 has been ripping for months.

TSLA is the laggard — and now traders are rotating into the one big name that hasn’t moved yet.

If it holds here, the upside could be sharp.

🔹 My Trade Plan:
1️⃣ Starter Long: Took an entry on the wedge trendline break.
2️⃣ Why Not Full Size Yet? This is day 4 of the move — in my playbook, that’s a starter size only.
3️⃣ Add Trigger: If we get an inside day or small dip that holds above the 9 EMA, I’ll add the rest of the position.
4️⃣ Stop: Under the wedge breakout level for now.

Why I Like This Setup:

Wedge break + rotation narrative + strong news absorption.

Market psychology turning — when a stock stops going down on bad news, it’s often about to go up.

Starter now, add on the dip = structured risk.