Tesla Short Position
Since the start of the year Tesla has seen bearish trends. This is easily presented using swing low and
swing high patterns since the start of the year. With highs of $1199 on 03/01/22 , and lows of $699
on 24/02/22 the price underlying price of tesla has decreased in value. This swing low, swing high
pattern is identified using the two golden lines going through high and low points since trading
began in New York on 03/01/2022.
Using a Fibonacci with a 20- day range investors can see that based on the stock’s performance, the
asset has a support level equal to $610 (green line) and a resistance that is equal to $782 (red line).
Currently priced at $703, we can also see that the current underlying price lies closer to its resistance
however only marginally. The asset is $79 from its support and $93 form it’s resistance.
Furthermore, it’s important to mention that the stock’s price has fallen 7% since the start of the day.
Based on this it’s more likely for the stock to fall even further, closer to its support. However, it’s
important to mention that after this, investors are more likely to expect a correction towards it’s
resistance before falling even further. Whilst it would be reasonable to set a bullish target in line
with the Fibonacci’s resistance level, it would be more reasonable to anticipate a bearish sentiment
to continue regardless of any bullish corrections based on the current macro-economic climate.
Therefore, in line with swing low and high patterns and information presented by the Fibonacci, we
are bareish in sentiment.
To provide further accuracy in addition to the Fibonacci, the Bollinger band interprets data using
standard deviation based on the stock’s performance in the past 20-days. The Bollinger presents an
upper bound level equal to $756 and a lower bound level equal to $637. Based on this we can see
that the price lies closer to the upper bound however only marginally. The asset’s price is $53 from
it’s upper bound and $66 from it’s lower bound. Based on this, we are bareish in sentiment. Whilst
there could be bullish corrections before further bearish movements, because of the marginal
difference between the stock’s price to the upper and lower bounds; we anticipate the stock to
continue to fall in value. Based on this we have decided to set the target in line with the bollinger’s
lower bound.
To conclude, we have decided to set a target price in line with the bareish sentiment seen
since the start of the year. We have presented these trends using swing low and high patterns since
the start of the year, Fibonacci retracements with a 20-day range as well as a 20-day ranged
Bollinger. For this reason, we have set our target price in line with bareish signals presented and for
accuracy have set a price in line with the Bollinger’s lower bound.
swing high patterns since the start of the year. With highs of $1199 on 03/01/22 , and lows of $699
on 24/02/22 the price underlying price of tesla has decreased in value. This swing low, swing high
pattern is identified using the two golden lines going through high and low points since trading
began in New York on 03/01/2022.
Using a Fibonacci with a 20- day range investors can see that based on the stock’s performance, the
asset has a support level equal to $610 (green line) and a resistance that is equal to $782 (red line).
Currently priced at $703, we can also see that the current underlying price lies closer to its resistance
however only marginally. The asset is $79 from its support and $93 form it’s resistance.
Furthermore, it’s important to mention that the stock’s price has fallen 7% since the start of the day.
Based on this it’s more likely for the stock to fall even further, closer to its support. However, it’s
important to mention that after this, investors are more likely to expect a correction towards it’s
resistance before falling even further. Whilst it would be reasonable to set a bullish target in line
with the Fibonacci’s resistance level, it would be more reasonable to anticipate a bearish sentiment
to continue regardless of any bullish corrections based on the current macro-economic climate.
Therefore, in line with swing low and high patterns and information presented by the Fibonacci, we
are bareish in sentiment.
To provide further accuracy in addition to the Fibonacci, the Bollinger band interprets data using
standard deviation based on the stock’s performance in the past 20-days. The Bollinger presents an
upper bound level equal to $756 and a lower bound level equal to $637. Based on this we can see
that the price lies closer to the upper bound however only marginally. The asset’s price is $53 from
it’s upper bound and $66 from it’s lower bound. Based on this, we are bareish in sentiment. Whilst
there could be bullish corrections before further bearish movements, because of the marginal
difference between the stock’s price to the upper and lower bounds; we anticipate the stock to
continue to fall in value. Based on this we have decided to set the target in line with the bollinger’s
lower bound.
To conclude, we have decided to set a target price in line with the bareish sentiment seen
since the start of the year. We have presented these trends using swing low and high patterns since
the start of the year, Fibonacci retracements with a 20-day range as well as a 20-day ranged
Bollinger. For this reason, we have set our target price in line with bareish signals presented and for
accuracy have set a price in line with the Bollinger’s lower bound.
💥 Free signals and ideas ➡ t.me/vfinvestment
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