$TSLA Giant Wedging Pattern (VCP)

Jul 16

TSLA is in a giant 7 month wedging pattern. It can be seen as a VCP (Volatility Contraction Pattern) as well. These types of patterns can break either way. However, in this case we have a rising 50 DMA (red). That suggests to me that this will break to the upside.

I already have a small position in TSLA and I will look to add if or when it breaks above the 50 DMA and again if or when it breaks above the upper downtrend line. If it breaks the lower line, I am out.

Be aware that Tesla reports earnings in 7 days, Wednesday, July 23rd, after the bell.

Jul 18

Trade active

TSLA As I pointed out above, I have added to my position and now have a full size lot as it has retaken the 50 DMA (red). I still plan on adding more if / when it can break the downtrend line. (TBD). My stop on todays add will be just below the LOD.

Jul 28

Note

TSLA I posted this original chart 12 days ago. It is still consolidating in the wedging pattern. It now seems to be having trouble getting up and over both the 50 DMA (red) and the upper wedge's downtrend line. I have an alert on the upper trendline. This can still break either way. Patience is in order.

Aug 1

Note

TSLA Looks like it is trouble here. It has broken below the lower trendline and the shorter term MAs. But, it has happened in a weak overall market and could be an overshoot. For the moment we do have a series of higher lows. However, the most recent low (today) could continue lower which would then give us a lower low. I am sitting out for now.