Tesla (TSLA) Consolidation
I am not certified by any individual or institution to give financial or investment advice.
Tesla (TSLA) may be in a consolidation/roll. I have my solid orange lines drawn as horizontal Resistance and Support. If this analysis is correct, TSLA is moving in an $80 ish roll and is sitting at Support ready to go up to Resistance. TSLA has been a hot stock recently, but it may be taking this time to cool off a bit. It's looking like a fast mover. It has a stride which spans that $80 ish spread in only a couple days, which means if you plan to attempt to take advantage of a rolling stock strategy for trading you'll need to be ready with your exit strategies for profit and/or loss.
For Consideration:
(1) The "Big Four" indexes are all at uptrend Resistance right now. TSLA seems to be going the opposite of the indexes in its movements. I do not think that is cause for concern because even though the indexes are at Resistance they are still all in uptrends, and I predict they will remain in that trend for the immediate future.
(2) As mentioned above, it's a fast mover. If you decide to attempt a rolling stock strategy I recommend utilizing OCO orders (if you're broker offers them) to have pre-set profit/loss exits. If your broker doesn't offer OCOs you may want to pre-set a stop out you can manually change on a daily basis, and have an alert set to trigger at a certain bullish price.
(3) TSLA has not hit its 50 Day EMA since November of 2020. With the indexes at Resistance TSLA may take this time to drop with them (as opposed to continuing its consolidation). If TSLA breaks its Support within the next week, don't be surprised if it takes a $50 ish drop to touch the 50 Day EMA (or lower). I still don't see that as cause for concern if you hold TSLA for mid to long term investment purposes as it will still be bullish, and there is possible Support in that area as well.
I do not currently hold any positions in Tesla. Let me know what you think or if you have any questions.
Tesla (TSLA) may be in a consolidation/roll. I have my solid orange lines drawn as horizontal Resistance and Support. If this analysis is correct, TSLA is moving in an $80 ish roll and is sitting at Support ready to go up to Resistance. TSLA has been a hot stock recently, but it may be taking this time to cool off a bit. It's looking like a fast mover. It has a stride which spans that $80 ish spread in only a couple days, which means if you plan to attempt to take advantage of a rolling stock strategy for trading you'll need to be ready with your exit strategies for profit and/or loss.
For Consideration:
(1) The "Big Four" indexes are all at uptrend Resistance right now. TSLA seems to be going the opposite of the indexes in its movements. I do not think that is cause for concern because even though the indexes are at Resistance they are still all in uptrends, and I predict they will remain in that trend for the immediate future.
(2) As mentioned above, it's a fast mover. If you decide to attempt a rolling stock strategy I recommend utilizing OCO orders (if you're broker offers them) to have pre-set profit/loss exits. If your broker doesn't offer OCOs you may want to pre-set a stop out you can manually change on a daily basis, and have an alert set to trigger at a certain bullish price.
(3) TSLA has not hit its 50 Day EMA since November of 2020. With the indexes at Resistance TSLA may take this time to drop with them (as opposed to continuing its consolidation). If TSLA breaks its Support within the next week, don't be surprised if it takes a $50 ish drop to touch the 50 Day EMA (or lower). I still don't see that as cause for concern if you hold TSLA for mid to long term investment purposes as it will still be bullish, and there is possible Support in that area as well.
I do not currently hold any positions in Tesla. Let me know what you think or if you have any questions.
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