This is a follow up idea to the idea I previously published a few days back on tradingview.
In this idea I discuss how, following a trendline analysis, a new trading pattern/price trend for tesla will be emerging within the next few days and how this might set up a few trading scenarios this/next week. It is likely that we will know the trend for this stock for the next few weeks by close of trading Wednesday this week, or Monday next week.
Like before, 1 shows how the stock seems to be following a trend line. This is further illustrated by 2, which further shows that lines of support analysis are valid for this stock. Additionally, line 2 also shows that a filter of around 3% and possibly 3 days also helps avoid bear traps as today (21 Sep) the price bounced off the trend line back up. Line 3, drawn using the lows of 15 and 16 Sep shows how the line of support last week seems to be forming a line of resistance for the stock following on from the dip below the support line on 17 Sep.
Further more, using both lines 3 and 2 and the red line from the peak of 01 Sep and line 2, shows that there are wedges forming, indicating an upcoming price breakdown or breakout.
I think the chances of a breakdown are higher than a break out because the RSI is in a (marginally, but visibly) downward trend from 15 Sep and the last two trading sessions (18 Sep and today), particularly today, have had hanging man candlesticks, usually indicative of an impending downward move.
My ideas around trading strategies overall for this are waiting for confirmation of the price move the following day and:
1. If the price falls below todays closing price, wait and see over the next 2/3 days to see if it continues to follow line 2. In which case a bullish case can be made for the stock and purchase for a long position on Thursday this week.
2. If the price opens higher than today's closing price, then wait and see over the next 2/3 days to see if it continues to follow line 3. In which case a bullish case can be made for the stock and purchase for a long position on Thursday this week.
3. If today's hanging man is confirmed tomorrow, and the price continues to drop below line 2, especially if it penetrates more than 3% below line 2 and does not bounce back up over the next 3 days (i.e. a price penetration of 3% and a filter of 3 days), then it is exceedingly likely to continue to fall to line 1. At which point further analysis/period of patience (i.e. waiting) will have to be undertaken to see if this line continues to provide support. If the price were to fall to line 2, and over the next 3/5 days were to bounce up and remain above this line, a bullish case could be made once again to go long on the stock. However, if after a 3% penetration below line 1 and a filter of 3 days shows the price to continue to remain below line 1 then it is likely the stock is in a longer term downward trend.
In all of these cases, we will most likely know the trend for the next few weeks for this stock by close of trading Wednesday this week, or Monday next week.
In this idea I discuss how, following a trendline analysis, a new trading pattern/price trend for tesla will be emerging within the next few days and how this might set up a few trading scenarios this/next week. It is likely that we will know the trend for this stock for the next few weeks by close of trading Wednesday this week, or Monday next week.
Like before, 1 shows how the stock seems to be following a trend line. This is further illustrated by 2, which further shows that lines of support analysis are valid for this stock. Additionally, line 2 also shows that a filter of around 3% and possibly 3 days also helps avoid bear traps as today (21 Sep) the price bounced off the trend line back up. Line 3, drawn using the lows of 15 and 16 Sep shows how the line of support last week seems to be forming a line of resistance for the stock following on from the dip below the support line on 17 Sep.
Further more, using both lines 3 and 2 and the red line from the peak of 01 Sep and line 2, shows that there are wedges forming, indicating an upcoming price breakdown or breakout.
I think the chances of a breakdown are higher than a break out because the RSI is in a (marginally, but visibly) downward trend from 15 Sep and the last two trading sessions (18 Sep and today), particularly today, have had hanging man candlesticks, usually indicative of an impending downward move.
My ideas around trading strategies overall for this are waiting for confirmation of the price move the following day and:
1. If the price falls below todays closing price, wait and see over the next 2/3 days to see if it continues to follow line 2. In which case a bullish case can be made for the stock and purchase for a long position on Thursday this week.
2. If the price opens higher than today's closing price, then wait and see over the next 2/3 days to see if it continues to follow line 3. In which case a bullish case can be made for the stock and purchase for a long position on Thursday this week.
3. If today's hanging man is confirmed tomorrow, and the price continues to drop below line 2, especially if it penetrates more than 3% below line 2 and does not bounce back up over the next 3 days (i.e. a price penetration of 3% and a filter of 3 days), then it is exceedingly likely to continue to fall to line 1. At which point further analysis/period of patience (i.e. waiting) will have to be undertaken to see if this line continues to provide support. If the price were to fall to line 2, and over the next 3/5 days were to bounce up and remain above this line, a bullish case could be made once again to go long on the stock. However, if after a 3% penetration below line 1 and a filter of 3 days shows the price to continue to remain below line 1 then it is likely the stock is in a longer term downward trend.
In all of these cases, we will most likely know the trend for the next few weeks for this stock by close of trading Wednesday this week, or Monday next week.
