Amazon Short PositionCurrently priced at $135 Tesla’s underlying stock price sits between its weekly PP 0.236 and PP 0.382 Fibonacci resistance pivots . Currently priced just below weaker PP 0.382 resistance level the stock is trading above its central PP level. This is a bareish signal. Investors should expect a correction towards its support. Furthermore, Tesla’s underlying price sits outside the 20-day ranged Bollinger’s upper bound. This is also a bareish signal, investors should expect a correction towards it’s lower bound.
Based on these signals it’s reasonable to assume a bareish correction towards the Fibonacci’s support. We anticipate Tesla’s underlying price to reach it’s 0.382, R1 resistance pivot before bareish corrections occur. Based on buy trends since the start of the year represented by the green candles, Tesla’s underlying stock price has pretty much reached the top of a buying trend and investors are about to witness bareish corrections. I have presented this using swing low and high prices since the start of the year.
Therefore, we have set a purchase price between the PP 0.236 and PP 0.382 resistance level . We anticipate based on buying trends that the green candles will reach a price of at least $137. The team have set a target price in line with the Fibonacci’s middle support pivot of PP 0.706. The buyer should sell around $101.
