Hi Traders,
Licia's back this week with two picks, and the contrast is sharp.
One is the most-watched stock in America, breaking out of a quiet stretch and looking ready to run. The other is a hot AI infrastructure name that's run too far, too fast, and her charts are flashing yellow.
She's got specific levels, specific stops, and specific targets on both.
One long, one short. One to love, one to leave alone.
Licia’s analysis below.
Hi Traders,
I am loving Tesla (TSLA) this week.
It has just broken out of a box range to the upside. The Japanese call consolidation a box range.
It did get stopped out at the 50 day moving average, but it is going to pop right over that and trade to the 200 day moving average at $402.15. Here it is on the chart. The 50 day is the orange line and the 200 day is the turquoise line:
TSLA is an electric vehicle, energy storage, and autonomous AI technology company led by Elon Musk.
Its core business segments are:
- Automotive: Model 3, Y, Cybertruck, Semi, plus regulatory credits and FSD subscriptions.
- Energy Generation and Storage: Megapack and Powerwall.
- Future bets: Robotaxi (Cybercab), Optimus robot, advanced AI training, and autonomy software.
Use a close below $380 as your stop loss.
My stinker this week is Nebius Group (NBIS). It's primed for a pullback.
The stock is bear flagging as it struggles to trade and close over the 20 day moving average (pink line).
It will trade down to $130.19 and then down to the 50 day moving average (orange line), which lines up perfectly with the bottom of the pitchfork. That makes it a great price target.
Use a close over $140.50 as your stop loss.
NBIS is a technology company focused on building AI infrastructure and full-stack cloud platforms for AI workloads. The stock has been one of the bigger gainers in the AI infrastructure (neocloud) sector over the past year, up dramatically from its post-restructuring lows.
Nebius is the rebranded international arm of the former Yandex N.V., the Russian tech giant. After the geopolitical events and sanctions, the company divested its Russian operations in 2024, renamed itself Nebius Group, and repositioned entirely around AI infrastructure.
Core business:
- Nebius AI: AI-centric cloud platform offering large-scale GPU clusters, cloud services, and developer tools for training and running AI models.
- High-performance computing and data centers in Europe, North America, and Israel.
- Toloka: Data labeling and annotation platform for generative AI development.
- Other assets: TripleTen (edtech bootcamps for tech careers) and Avride (autonomous driving and delivery robotics).
It has a strategic alliance with NVIDIA to accelerate physical AI and robotics simulation and training. The company is aggressively expanding GPU capacity to meet surging demand for AI compute.
Trade Accordingly,
Licia Leslie
So there you have it: Tesla breaking out toward $402 with a clean stop, Nebius rolling over toward $130 with a clear invalidation level.
Now I'm curious if one of Licia’s picks will become the basis for the next high-probability option the crew chooses Monday on the Ticker Highlight Premium show.
Here’s how it works: On Monday’s State of the Market at 10 AM ET, each trader will reveal which stock they loved for the week, and the one they hated.
Tap this to add State of the Market to your calendar.
Then on the Ticker Highlight Premium show at 10:30 AM ET, they’ll pick the best play of the bunch and find the best option to play.
To get the next pick, tap this link.
See you Monday.
Charles Delvalle
Editorial Director, Option Pit