TSLA (1-Hour Timeframe) Analysis. Dec. 9Market Overview
* TSLA has been trading in a clear uptrend, with a strong push to retest the resistance zone at $399.00.
* A rising wedge pattern is forming, which could signal a potential pullback if momentum slows.
* Volume is declining on the latest push upwards, suggesting reduced buyer enthusiasm near resistance.
Key Levels
1. Resistance:
* $399.00: Strong psychological and technical resistance. A breakout above could trigger a rally toward $410.00.
* $401.97: Intraday resistance based on recent highs.
2. Support:
* $379.00: Immediate support and previous consolidation area.
* $370.78: Critical support zone; a break below could signal a deeper correction.
* $326.59: Major support and previous demand zone.
Technical Indicators
* 9 EMA: Price is riding the EMA upward, confirming short-term bullish momentum.
* MACD: Histogram is showing weakening momentum as the MACD line flattens, indicating possible consolidation or reversal.
* Volume: Declining as price approaches resistance, a potential bearish divergence.
Scenarios and Trading Plan
Bullish Scenario:
* If TSLA breaks and holds above $399.00, it may head toward $410.00.
* Entry: $399.50 on breakout with volume confirmation.
* Stop Loss: $396.00.
* Take Profit: $405.00 and $410.00.
Bearish Scenario:
* If TSLA fails to break $399.00 and closes below $379.00, a pullback toward $370.78 or lower could occur.
* Entry: Short at $378.50.
* Stop Loss: $382.50.
* Take Profit: $370.00 and $365.00.
Risk Management Checklist
1. Watch for high-volume confirmation before entering any breakout trades.
2. Respect stop losses to manage risk.
3. Monitor MACD and volume trends for divergence.
Thoughts
* TSLA's current trend is bullish, but the weakening momentum suggests a short-term pullback could occur before another leg up.
* Traders should wait for confirmation of direction before committing to a position.
