Tesla (TSLA) Short Trade Idea – A Volume Profile & VWAP-Based Setup
Market Context: Are ES & NASDAQ Ready for a (Intraday) Pullback?
The broader market has been on a strong upward move, with S&P 500 E-mini futures (ES) retracing from 5,559 to test the 5,600 round number, coming within half a point of yesterday’s VWAP before stalling. At this stage, ES may either break through or reject lower, but it is currently showing signs of resistance.
Meanwhile, NASDAQ futures (NQ) surged approximately 225 points, climbing from 19,400 to 19,622, where it met yesterday’s Point of Control (POC)—a key liquidity zone. This strong rally suggests that a pullback could be near, setting up potential downside momentum.
This backdrop aligns well with a short trade setup on Tesla (TSLA), which has rallied sharply—gaining nearly 18% since March 10th—and is now approaching key resistance levels.
Tesla Short Setup – Catching It Near VWAP & Key Resistance
At the time of this analysis, TSLA is trading very close to today’s VWAP at $249.24, with the first short order already filled. Additionally, yesterday’s Point of Control (POC) at $248.09 provides another key reference level, reinforcing our bearish stance.
Given TSLA’s strong recent run, we anticipate some cooling off before the stock can sustain further upside. The trade is structured around volume profile-based analysis, VWAP, and key price levels, ensuring precise entry and exit points for risk management.
TSLA Short Position Plan
🔹 Weighted Average Entry (Full Position): $250.79
🔹 Stop Loss: $253.79 (+1.20%)
Profit Targets & Risk Management
🔹 Risk-Reward Ratio (RR): 4.50
Key Profit-Taking Levels
Additionally, March 10th’s Value Area High at $239.51 serves as a key “line in the sand” between bulls and bears. A sustained move below this level would reinforce further downside potential.
Conclusion – A Well-Timed Short with Key Levels in Focus
Tesla’s recent rally and proximity to key VWAP and volume profile levels provide an excellent setup for a short trade. The broader market context suggests that both ES and NASDAQ may be ready for a retracement, supporting the case for a pullback in TSLA.
With clearly defined entries, a structured stop loss, and high-probability profit targets, this trade plan offers a strong risk-reward ratio of 4.50.
📌 Trade at your own risk. This is not financial advice. Adjust position sizes as needed to match your budget.Visit ForexLive.com for additional views.
Tired of missing great stock trades or getting lost in noisy groups? investingLive Stocks delivers focused, actionable trade ideas right when you need them.
✅ It’s FREE! No hidden costs, no risk—just top-tier stock insights✅ S&P 500 & Nasdaq 100 trade ideas – Stocks in focus, including large caps and momentum plays✅ Unique trading opportunities – Not found anywhere else✅ Fast, focused, noise-free alerts – No spam, just actionable updates✅ Timely market entries – Be in the right trade at the right time✅ buyTheDip plays – Catch the strongest rebound setups at key levels✅ Smart risk management – Learn how to scale in & out like the pros
📲 Get trade alerts delivered directly to your mobile & desktop Telegram.👉 Join investingLive Stocks Telegram Channel
This article was written by Itai Levitan at www.forexlive.com.
