Bull Crown (bearish) Failed?I don’t own any TSLA, just analyzing it.
A bull crown is bearish because a crown “caps” a bull run — much like a crown on a kings head.
These types of patterns are a part of a series of harmonic chart patterns that are broken down in phases. This particular pattern is something like a cheap Wyckoff distribution.
So, in this chart I would say the fallout from here is bearish, however, it seems that it may have broken out -or- it’s perhaps just meandering while it waits for the market to pull back.
It is possible, though, that Elon’s recent moves have made a positive impact on how TSLA will preform even if the market chooses to run bearish. Some of these recent moves would include:
Stock Split: making stocks affordable for your supporters is key — and overlooked modernist companies. Especially catering to your customer demographic — $300 is affordable for me, while still allowing me to diversify my portfolio. (I don’t own any because I’m flat broke, also something to consider)
FSD beta: FSD beta is a new revenue stream for TSLA, it’s also a great way to add lower cost (to them) value to customers, with frequent version updates that keeps people happy and engaged. Tesla is already fully geared to gather driving data and push out software updates, this is only “lower cost to them” because they planned ahead and built the program (and company) to be efficient.
Social Engagement: it goes without saying that Elon is quite popular on Twitter, the way he uses the platform is unlike any other CEO, he’s always pointing out interesting things happening at his companies. He’s built a very strong support from the people who’ve gotten to appreciate him from this platform.
Renewable Energy Regulation: it’s coming, with news coming out each day of how companies will deal with the shedding of fossil fuels.
My only concerns at this time, which would have me convinced that it was a true bull crown, are Q3 production results, smear campaigns, and the state of the economy (will effect everyone).
