TSLA: A Powerful Turnaround is About to Happen (D & W analysis)!
Since our last study, we have observed that TSLA shares are trying to resume the medium-term uptrend by attempting to break through the last top at $246.70. The problem is that the price failed to close above this resistance on the daily chart, so the upward movement failed to materialize. The link to my previous public analysis is below this post, as usual.
On the other hand, the bears failed to take the price below the support at $226.37, the previous top that should act as future support. TSLA shares would only reverse the bullish sentiment if they made a lower bottom than the previous one, breaking through the last support at $226.37.
For now, it looks like the 21 EMA is serving as a very good support point. So, if you ask me, the trend is still up, as the price movement pattern is still one of higher highs/higher lows, trading above the moving average, even if it hasn't officially broken through the last top at $246.70 (and closing above it). And in fact, this is an interesting point, as confirmation of a bottom signal in the vicinity of the 21 EMA could trigger the next bullish rally - and the price is reacting well so far, but there is no confirmation yet. The bearish reversal point would be $226. The weekly chart shows how critical the moment is for TSLA shares:
The price has just hit the resistance of its Descending Channel for the fifth time, and as usual failed to break through it. That's why if the price loses the $226 area, we could see a continuation down to the support line of this channel, well below $200.
But what if the price reacts and breaks through the resistance to the upside? Then we'll have something new, which in my opinion would be a technical turning point that would take the price to the next resistance on the weekly chart, around $300.
There are opportunities in the medium term, but the price needs to react and confirm a breakout of one of its key points, either resistance or support, to confirm a real reversal. I'll keep you updated, so remember to follow me and support this idea if you find it interesting.
Remember, we can't predict the future. Real trading is reactive, not predictive, so let's pay attention to the key points mentioned in this analysis.
Best regards,
Nathan.
On the other hand, the bears failed to take the price below the support at $226.37, the previous top that should act as future support. TSLA shares would only reverse the bullish sentiment if they made a lower bottom than the previous one, breaking through the last support at $226.37.
For now, it looks like the 21 EMA is serving as a very good support point. So, if you ask me, the trend is still up, as the price movement pattern is still one of higher highs/higher lows, trading above the moving average, even if it hasn't officially broken through the last top at $246.70 (and closing above it). And in fact, this is an interesting point, as confirmation of a bottom signal in the vicinity of the 21 EMA could trigger the next bullish rally - and the price is reacting well so far, but there is no confirmation yet. The bearish reversal point would be $226. The weekly chart shows how critical the moment is for TSLA shares:
The price has just hit the resistance of its Descending Channel for the fifth time, and as usual failed to break through it. That's why if the price loses the $226 area, we could see a continuation down to the support line of this channel, well below $200.
But what if the price reacts and breaks through the resistance to the upside? Then we'll have something new, which in my opinion would be a technical turning point that would take the price to the next resistance on the weekly chart, around $300.
There are opportunities in the medium term, but the price needs to react and confirm a breakout of one of its key points, either resistance or support, to confirm a real reversal. I'll keep you updated, so remember to follow me and support this idea if you find it interesting.
Remember, we can't predict the future. Real trading is reactive, not predictive, so let's pay attention to the key points mentioned in this analysis.
Best regards,
Nathan.
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