Sentiment has grown increasingly negative on TSLA and ETH in recent months.
I believe while frustrations could be high, they still have a place in your portfolio. The catch with ETH and TSLA is that they need low interest rates to truly run.
This chart shows ETHUSD on the top, 2wk candles. You can see that it’s forming a large pennant on the chart. Since we entered the pennant from below, we are most likely to continue out of the top of the pennant— but we won’t know until it is confirmed with a breakout and retest.
Below that, I have the RSI indicator, which is also clearly consolidating and ready for a breakout.
The pink line is TSLA, a stock that I thought performed similarly to ETH and wanted to analyze. Finally the last line is the Federal Funds Rate. I inserted a vertical line where the rate hit zero effectively- and you can see how they both began to go parabolic shortly thereafter.. just a coincidence? What are some other stocks that have this similar of a correlation?
High CAGR stocks and commodities can chop for what feel like painfully long periods.. patience!
I believe while frustrations could be high, they still have a place in your portfolio. The catch with ETH and TSLA is that they need low interest rates to truly run.
This chart shows ETHUSD on the top, 2wk candles. You can see that it’s forming a large pennant on the chart. Since we entered the pennant from below, we are most likely to continue out of the top of the pennant— but we won’t know until it is confirmed with a breakout and retest.
Below that, I have the RSI indicator, which is also clearly consolidating and ready for a breakout.
The pink line is TSLA, a stock that I thought performed similarly to ETH and wanted to analyze. Finally the last line is the Federal Funds Rate. I inserted a vertical line where the rate hit zero effectively- and you can see how they both began to go parabolic shortly thereafter.. just a coincidence? What are some other stocks that have this similar of a correlation?
High CAGR stocks and commodities can chop for what feel like painfully long periods.. patience!
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.