Updated TSLA Analysis for August 23, 2024:Chart Overview:
This updated chart provides a broader view, focusing on the 1-hour timeframe, which is critical for both intraday and short-term trading strategies.
Support and Resistance Levels:
Immediate Support at $212.00: This level is currently being tested. If the price sustains above this level, it could serve as a launching point for a bullish move. However, a break below this could signal a continuation of the bearish trend.
Lower Support at $198.76: If TSLA continues to fall, this level around $198.76 becomes critical. This area could attract buyers looking for a value entry.
Immediate Resistance at $218.97-$220.37: This range represents a strong resistance zone. If the price moves upwards, expect sellers to become active around this zone. A breakout above this area would indicate a shift towards a bullish sentiment.
Higher Resistance at $225.59 and $228.21: These levels could serve as additional resistance if the price manages to break through the $218.97-$220.37 range.
Volume Profile Insights:
The Volume Profile reveals that significant trading activity occurred between $220.37 and $218.97, making this a crucial battleground for bulls and bears. The price action around this zone will likely dictate the direction for the upcoming trading sessions.
MACD Indicator:
The MACD histogram is showing signs of a potential bullish crossover, suggesting that momentum may be shifting towards the bulls. However, this needs confirmation with further price action.
Trading Strategy Recommendations:
For Scalping:
Bullish Entry: Consider entering a long position if TSLA breaks above $218.97 with strong volume. The initial target would be $220.37, with potential extensions to $225.59 if momentum continues.
Bearish Entry: If TSLA breaks below $212.00, consider shorting with a target around $198.76. Use tight stop-losses to manage risk.
Stop-Loss: A reasonable stop-loss for long positions could be set below $218.97, while for short positions, a stop-loss just above $212.00 would minimize risk.
For Intraday Trading:
Bullish Scenario: If Powell's speech indicates dovish policy, expect TSLA to potentially move towards $220.37 and possibly challenge $225.59. A break above this would further strengthen the bullish case.
Bearish Scenario: In contrast, if the speech hints at continued tightening, TSLA might test the $212.00 support and could move further down to $198.76.
Market Sentiment:
Given the current economic uncertainty and caution ahead of Powell's Jackson Hole speech, traders should be prepared for volatility. The overall market sentiment is leaning cautious, so it's important to keep an eye on broader market cues and react accordingly.
