The last bullish move was quite strong, with the price moving above a large consolidation zone from March to April. Now, we have something that looks like a bull flag—the price is crawling slowly down, finding some support near the consolidation POC. This is a very tempting opportunity to enter a LONG position with a potential upside of 15% or more. However, it is likely to fail. Here is why:
1. The price is in a monthly/weekly downtrend. For the monthly downtrend to reverse, we need a trend change at the weekly level. So far, the bulls have NOT even managed to set a higher low on the weekly chart.
2. TSLA is much weaker than the market. While the S&P has been rallying for the last two weeks, TSLA has been declining.
3. TSLA's last earnings report was bad. Although the price rallied for a short period, it doesn't mean that the sentiment has significantly changed.
To sum it up, the context is very bearish. I wouldn't seriously consider any LONG positions at this stage.
Disclaimer
I don't give trading or investing advice, just sharing my thoughts.
1. The price is in a monthly/weekly downtrend. For the monthly downtrend to reverse, we need a trend change at the weekly level. So far, the bulls have NOT even managed to set a higher low on the weekly chart.
2. TSLA is much weaker than the market. While the S&P has been rallying for the last two weeks, TSLA has been declining.
3. TSLA's last earnings report was bad. Although the price rallied for a short period, it doesn't mean that the sentiment has significantly changed.
To sum it up, the context is very bearish. I wouldn't seriously consider any LONG positions at this stage.
Disclaimer
I don't give trading or investing advice, just sharing my thoughts.
Comment:
Good day for bulls today but it is still not sufficient. Until buyers confirm daily uptrend together with setting weekly higher low, there is no bullish thesis.
Comment:
The trap has closed, and now most of the Friday buyers are locked in. They might still hope for a bounce as the price drop has slowed down. This pause also attracts some new, late buyers who think they have a chance to jump on the train. All the sellers need to do now is drive the price down in pre-market trading.
Comment:
Buyers got lucky this time. Something has changed in the last moment
Comment:
Bulls have come very close to shaping weekly higher low, which can lead to start of a weekly uptrend. I'm ready to change my original thesis if this week closes green (idealy above 180)
Comment:
The week closed in the green but slightly below 180. Buyers managed to establish a higher low on the weekly chart, though it doesn’t appear very convincing. Nevertheless, this marks the second significant change in weekly price action following April’s short-term rally. It is likely that the weekly downtrend is coming to an end, but this does not necessarily indicate the immediate start of an uptrend.