TSLA at a Critical Level! Reversal or More Pain Ahead? Feb. 26Technical Analysis (TA) & Price Action
Tesla (TSLA) has been in a sharp downtrend, breaking key support levels and forming a descending channel on the 1-hour chart. The stock is now testing a crucial demand zone around $300, which aligns with a major PUT wall and strong buyer interest.
Key observations:
* Trend Structure: TSLA is currently in a falling wedge pattern, often a sign of potential reversal.
* Support & Resistance:
* Major Resistance: $320 (previous breakdown level).
* Key Support: $300 (PUT Wall and highest negative NETGEX).
* Breakout Target: $340 if TSLA regains momentum.
* MACD Indicator: Bearish but showing early signs of a possible crossover.
* Stoch RSI: Oversold, suggesting a potential short-term bounce.
Options Flow & GEX Analysis
The GEX (Gamma Exposure) indicator reveals heavy PUT positioning near $300, making it a high-stakes level. A break below could trigger a gamma-driven sell-off, while holding above could fuel a short-covering rally.
* IVR (Implied Volatility Rank): 62, with IVx avg at 71.7%, indicating high volatility.
* Call Side Bias: 31.3% of options flow, meaning some traders are betting on a bounce.
* Key GEX Levels:
* PUT Wall & Key Support: $300 → Breaking below could see more downside toward $290-$280.
* CALL Resistance & Upside Target: $340 → Breaking above this level would confirm a reversal.
Trade Plan & Suggestions
📌 Bullish Reversal Play (If $300 Holds)
* Entry: Above $306 with strong volume.
* Target 1: $320
* Target 2: $340 (CALL Wall breakout target).
* Stop-loss: Below $297
📌 Bearish Breakdown Play (If $300 Fails)
* Entry: Below $297 with volume confirmation.
* Target 1: $290
* Target 2: $280 (Potential next support).
* Stop-loss: Above $310
Final Thoughts
TSLA is at a make-or-break level, with $300 acting as the battleground. If buyers step in, we could see a relief rally toward $320-$340. However, if selling pressure continues, a break below $300 could lead to a further slide toward $280. High volatility means traders should be cautious and wait for confirmation before entering a position.
📢 Risk Management: Adjust stop-loss levels and position size accordingly. This setup has high risk but also high reward potential.
🔹 Disclaimer: This analysis is for educational purposes only and does not constitute financial advice. Always conduct your own research and manage risk accordingly before trading.
