TSLA: TA for tomorrow trading (10/07/2024)Price Action
Current Price: $249.89
Downtrend Channel: TSLA is trading within a downward channel, with the price near the upper boundary. This suggests the price could face resistance and pull back unless there’s a breakout.
Support and Resistance Levels
Immediate Resistance:
$250.15: The price is currently testing this resistance level. A breakout above could indicate a reversal of the current downtrend.
$259.93: A stronger resistance level where price action could stall, particularly if TSLA breaks out of the descending channel.
Major Resistance:
$264.87-$264.86: If price momentum continues upward, this is the next key level, marked by previous highs.
Immediate Support:
$240.66: Immediate support, which aligns with previous price consolidation zones. A break below this level could see more downside.
$237.69: Stronger support where the price bounced previously. If this breaks, a deeper retracement could occur.
Major Support:
$223.54: This is a key level and the lowest support shown on your chart. If price action continues downward, this level could be tested.
Entry and Exit Points
For Long (Buy) Position:
Entry: A break and hold above $250.15 would be a signal for a potential long position. Watch for volume and momentum confirmation before entering.
Target: Next resistance levels around $259.93 or up to $264.87.
Stop-Loss: Place a stop-loss below $240.66 in case of a breakdown.
For Short (Sell) Position:
Entry: If price action fails to break $250.15 and rejects from this resistance, consider entering a short position.
Target: Watch for the price to fall back to the support levels at $240.66 and $237.69.
Stop-Loss: Set a stop-loss above $250.50 to limit risks in case of a breakout.
Trend & Direction
Bearish Bias: Currently, the stock is trading within a descending channel, indicating that the overall trend is bearish. If the price remains within the channel, expect further downside or range-bound trading.
Potential Reversal: However, a breakout above $250.15 could signal a trend reversal, allowing for a bullish move toward higher resistance levels.
Indicators and Volume
MACD: There’s no detailed view of the MACD, but based on the chart, watch for any bullish or bearish crossovers as a potential signal for trend direction.
Volume: Volume is a key factor in confirming breakouts. If you see a high volume push through $250.15, that would strengthen a bullish case.
Tomorrow’s action will likely depend on how TSLA handles the $250.15 resistance. A breakout above that level could indicate more upside, while failure to break could lead to a bearish continuation.