TeslaLong
TSLA Flag Formation
We believe Tesla is currently forming a flag on 30 mins chart. It implies bullish sentiment of the market.
1. Price is moving in downwards sloping channel (defined by parallel green lines)
2. Flag formation is almost 75% completed
(Please refer to time lapse cycles and vertical blue lines)
Forecast Scenario 1.
a. Price moves up to red rectangle for final test of channel resistance
b. After above test price retrieves to the green rectangle (second green rectangle on the chart)
c. Price exits flag formation (through yellow oval) to retest original highs (solid green horizontal line)
Forecast Scenario 2:
a. Price retests original lows defined by intersection of red horizontal line and blue vertical line. (First green rectangle on the chart)
b. Above “forecast scenario 1” to follow, with possible slight timeline shift.
Forecast scenario 3:
If price breaks horizontal red line to the downside, above described flag formation as well as forecast 1 and 2 would be invalid.
How we are approaching current set up:
1. Long entry at green rectangles, if price behaves according to our forecasts, with stop loss just below red horizontal line.
Best case would be entry in first green rectangle, with very solid risk/reward ratio.
2. Short-term price target defined by green horizontal line
3. Mid-term price target to be determined after flag formation is resolved to the upside, and potentially will be much higher since flags typically occur midway through a trend.
Disclosure: This is not a financial, investing, or trading advise.
1. Price is moving in downwards sloping channel (defined by parallel green lines)
2. Flag formation is almost 75% completed
(Please refer to time lapse cycles and vertical blue lines)
Forecast Scenario 1.
a. Price moves up to red rectangle for final test of channel resistance
b. After above test price retrieves to the green rectangle (second green rectangle on the chart)
c. Price exits flag formation (through yellow oval) to retest original highs (solid green horizontal line)
Forecast Scenario 2:
a. Price retests original lows defined by intersection of red horizontal line and blue vertical line. (First green rectangle on the chart)
b. Above “forecast scenario 1” to follow, with possible slight timeline shift.
Forecast scenario 3:
If price breaks horizontal red line to the downside, above described flag formation as well as forecast 1 and 2 would be invalid.
How we are approaching current set up:
1. Long entry at green rectangles, if price behaves according to our forecasts, with stop loss just below red horizontal line.
Best case would be entry in first green rectangle, with very solid risk/reward ratio.
2. Short-term price target defined by green horizontal line
3. Mid-term price target to be determined after flag formation is resolved to the upside, and potentially will be much higher since flags typically occur midway through a trend.
Disclosure: This is not a financial, investing, or trading advise.
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.
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.