TSLA: Annoying accumulation. What's in here for us?

2021年1月21日Hello traders and investors! Let’s see how Tesla is doing today!

As we discussed in my previous analysis (Jan 11), Tesla was giving some signs of weakness, and now all the signs were triggered, and we are in a boring congestion.

The 21 ema is flat, and we are quite close to the next resistance at $ 867.95, which is a key point Tesla must defeat in order to continue the bull trend. But all we can expect right now is that Tesla will move erratically, and it won’t resume the bull trend until it defeats the red line.

Maybe the daily chart will offer more clues:



In the daily chart we can see a small Pennant pattern, but nothing too convincing, in my view, as the pennant is too tight, and this makes the pattern more fragile and less reliable.

But the low volume indicates that this congestion is not to be taken seriously. Even if Tesla loses the Pennant pattern downwards, the 21 ema will be there to hold the price (the 21 ema is a good and reliable support level when Tesla is trending).

The bias is still bullish in the mid-term, but the short-term congestion can make Tesla move erratically for some days, even after the Earnings, so we have to be careful here. And if Tesla drops to the 21 ema, it won’t be a sign to panic at all (in fact, it could be just an opportunity to buy).

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Thank you very much.