Tesla Approaching Key Support: Potential Long Setup in PlayTesla has recently experienced a strong bearish expansion, retracing toward previous value areas and currently trading below the value area high. It is finding support at a key daily support/resistance (SR) level of $217.
At this stage, Tesla is approaching a potential reversal zone, but for a long trade setup to be confirmed, we need to see consolidation on the daily timeframe, signaling exhaustion of selling pressure.
The next major technical support lies at $176, which aligns with multiple confluences:
1. 0.618 Fibonacci retracement level
2. Daily SR support at $176
3. VWAP (golden line) acting as support
4. Value area low of the previous range
This confluence increases the probability of a reaction in this zone, making it a key area to monitor for a potential long entry.
Trade Execution Considerations:
• Patience is key—we may see a bounce on lower timeframes before Tesla trades toward the $176 entry zone.
• Entry trigger should be established on lower timeframes, confirming bullish structure or a shift in momentum.
• Technical target: The key swing high once bullish confirmation is in place.
Until then, monitoring price action and waiting for confirmation will be crucial before taking a long position.
