Hello traders and investors! Let’s update our thoughts on TSLA today!
As we mentioned in our previous analysis, the $ 896 was the most important support level, and that said, the moment we lost it today, TSLA melted. However, it is not doing anything unexpected. In fact, it is doing what I said would be “the worst-case scenario”. The link to my previous analysis is below, as always.
First, in the 1h chart, TSLA lost its 21 ema, along with the $ 896, just to fill the last gap at $ 878, and to retest the purple line area, which was a technical target we already mentioned. To me, TSLA is inside a huge Ascending Triangle pattern, and since we are near its bottom, it is time to react.
However, TSLA must react quickly, preferably tomorrow, in order to reverse and seek the $ 943 again. Otherwise, it’ll resume the bearish bias all the way down to the 61.8% retracement in the daily chart, at least.
It is important to stress that although we are near support levels in the 1h chart, TSLA is still in a bear trend in the weekly chart, and its 21 ema is working as an annoying resistance.
Another thing is that the volume must increase, or it won’t go up properly. Remember one of the most important Dow Theory’s tenets: The volume must confirm the trend.
For now, we must wait for a proper reaction near its support before calling TSLA a buy again. Since we at support levels, I don't think this is the time to panic or sell. Instead, we must calmly watch for more signs, as are during times like this that the best opportunities to buy usually appear. Either way, I’ll keep you guys updated every day on it, so remember to follow me to not miss any of my analyses.
As we mentioned in our previous analysis, the $ 896 was the most important support level, and that said, the moment we lost it today, TSLA melted. However, it is not doing anything unexpected. In fact, it is doing what I said would be “the worst-case scenario”. The link to my previous analysis is below, as always.
First, in the 1h chart, TSLA lost its 21 ema, along with the $ 896, just to fill the last gap at $ 878, and to retest the purple line area, which was a technical target we already mentioned. To me, TSLA is inside a huge Ascending Triangle pattern, and since we are near its bottom, it is time to react.
However, TSLA must react quickly, preferably tomorrow, in order to reverse and seek the $ 943 again. Otherwise, it’ll resume the bearish bias all the way down to the 61.8% retracement in the daily chart, at least.
It is important to stress that although we are near support levels in the 1h chart, TSLA is still in a bear trend in the weekly chart, and its 21 ema is working as an annoying resistance.
Another thing is that the volume must increase, or it won’t go up properly. Remember one of the most important Dow Theory’s tenets: The volume must confirm the trend.
For now, we must wait for a proper reaction near its support before calling TSLA a buy again. Since we at support levels, I don't think this is the time to panic or sell. Instead, we must calmly watch for more signs, as are during times like this that the best opportunities to buy usually appear. Either way, I’ll keep you guys updated every day on it, so remember to follow me to not miss any of my analyses.
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