TSLA: Insanely Bullish! What to Expect Next? | D & W charts.In our previous analysis, we identified that TSLA was looking for its 21-week EMA, a classic region of support, where a very good reversal signal materialized.
Now, the price has resumed its previous uptrend, and we see it breaking through the most crucial resistance point at $265, which we also warned about in our last public study, the link to which is below this post.
Now, let's update you on the key points to keep an eye on.
Daily Chart (Left)
Gap Closure: Tesla has closed a significant gap from July 2023 at $289.52, which could act as a resistance level. Remember that gaps work as magnets when tthe price reverses. This gap closure often signifies an area where the stock might face selling pressure as previous buyers look to exit.
Support at $265.13: Previously a resistance level, this $265.13 area now serves as a future support based on the principle of polarity. Holding above this level would be a bullish signal, while a drop below might suggest weakness.
EMA Support: The stock is trading above its 21-day EMA, suggesting ongoing bullish momentum in the near term.
Weekly Chart (Right)
Approaching Next Resistance at $299.29: The weekly chart shows the next significant resistance level at $299.29. A break and hold above this level could open up more upside, potentially attracting more bullish interest.
EMA Support on Weekly: Similar to the daily, the 21-week EMA is supporting Tesla’s price, adding confidence for bullish traders.
Conclusion:
Tesla's chart shows bullish momentum with recent gap closure near $289.52 and support from the $265.13 level. Even if we see a top signal, the $265 area is supposed to be our next technical support level, and a pullback wouldn't ruin the bullish thesis to the $300 area - in fact, it would probably just be another buying opportunity, near a support level, when the R/R ratio is optimised. There is no technical evidence suggesting that it could correct for now, but we need to watch the price action very closely, as TSLA's price has just closed an important gap.
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Remember, real trading is reactive, not predictive, so let's stay focused on the key points described above and only trade when there is confirmation.
“To anticipate the market is to gamble. To be patient and react only when the market gives the signal is to speculate.” — Jesse Lauriston Livermore
All the best,
Nathan.
