TSLA: That's what TRAILING STOPS are for.
Hello traders and investors! I had to skip our daily studies yesterday, but now I’m back to see what’s going on with Tesla. It seems we have reasons to worry after all, but what should we do next? There are some important things to keep in mind. If you read my previous Tesla analysis, from 2 days ago, you’ll see that today’s movement is not surprising at all (link below).
First, Tesla engaged in a short-term bear market, at least in the hourly chart. Yesterday it lost the purple trendline, which was our guide in the short-term and it was the line that separates the bull’s territory from the bear’s territory. Also, it lost the red line $ 437, which was another important point for Tesla.
Right now, it just filled the Breakaway Gap in the hourly chart, which works as a support now. This is what an asset does after it loses strength and starts to lose its supports: It will seek for more supports. Simple technical analysis.
Now, let’s see the daily chart:
If you've followed the trailing stop strategy I’ve been detailing here, you would’ve sold Tesla when it triggered this Dark Cloud Cover pattern and avoided an uncomfortable pullback. The good news is this is just a pullback, as long it keeps above the 21 ema.
Speaking of 21 ema, it seems Tesla is going to hit it, as we discussed in my previous analysis. It will offer a support for the price.
I set the target at the 21 ema 2 days ago, but I think the purple line at $ 359 is a more relevant support, if we see a sharper pullback.
The bias is still bullish on Tesla, and although it gave us a lot of signs to get out of it, it still could trigger another long trade, if we see a good reaction near one of its supports, like the 21 ema or the purple line.
But right now, there’s nothing to do on Tesla, and we just need to wait. Other opportunities will come for sure. And if you liked this idea, please, support it! And I invite you to follow me to keep in touch with my analyses!
First, Tesla engaged in a short-term bear market, at least in the hourly chart. Yesterday it lost the purple trendline, which was our guide in the short-term and it was the line that separates the bull’s territory from the bear’s territory. Also, it lost the red line $ 437, which was another important point for Tesla.
Right now, it just filled the Breakaway Gap in the hourly chart, which works as a support now. This is what an asset does after it loses strength and starts to lose its supports: It will seek for more supports. Simple technical analysis.
Now, let’s see the daily chart:
If you've followed the trailing stop strategy I’ve been detailing here, you would’ve sold Tesla when it triggered this Dark Cloud Cover pattern and avoided an uncomfortable pullback. The good news is this is just a pullback, as long it keeps above the 21 ema.
Speaking of 21 ema, it seems Tesla is going to hit it, as we discussed in my previous analysis. It will offer a support for the price.
I set the target at the 21 ema 2 days ago, but I think the purple line at $ 359 is a more relevant support, if we see a sharper pullback.
The bias is still bullish on Tesla, and although it gave us a lot of signs to get out of it, it still could trigger another long trade, if we see a good reaction near one of its supports, like the 21 ema or the purple line.
But right now, there’s nothing to do on Tesla, and we just need to wait. Other opportunities will come for sure. And if you liked this idea, please, support it! And I invite you to follow me to keep in touch with my analyses!
⚠️ Want to take your trading to the next level?
👉 Join the Finance Hydra VIP Mentorship - 6 weeks of mentoring with weekly meetings and ongoing support. Limited places available!
✅ Find out more and sign up: thefinancehydra.com/
👉 Join the Finance Hydra VIP Mentorship - 6 weeks of mentoring with weekly meetings and ongoing support. Limited places available!
✅ Find out more and sign up: thefinancehydra.com/
Related publications
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.