Today is day one of a decline off of the high that has 6-days at one price (at the 250+ level). If TSLA holds here until the close, it sets up 5 more days of decline. However the drop in price is already in line with the high at 263 and the mode around 250, which implied a drop back to 237 where it fell to today.
So, this is just an update. It is not pointing out a low-risk, high-probability trade. I am merely updating you on the setup of the time that expired for TSLA at the high from the 12-day rally, the 5-day rally and the 3-day rally all expiring one day after each other.
TSLA can lauch on a new upward projectile once it climbs back above the mode since the high. You can approximate that by using a moving average of the number of days since it peaked which right now was 8 days ago. So, use an 8 day moving average now to find key resistance. Tomorrow, change your moving average to 9 and so on. Just count back to the number of days since the high.
If you are short TSLA, this is a good place to cover. Hence my "neutral" stance awaiting a rally to 250 to sell short with a stop and reverse at 255.
Cheers.
Tim 12:55PM EST, 3/10/2014
Comments
Listrest
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Hi Tim,
When does the bulish start on tsla waiting some feedbacks...appreciated as always.
Listrest
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thanks and I got out of the position and made some excellent.!
Listrest
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any idea how is it going so far on tsla...
timwest
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TSLA formed another mode at a lower price and that gives it a few more days to decline, so I will wait further.
AYosof
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Tomorrow is the last day of down rally. I am going to take position in bottoms... are you seeing the demand zone at the 216? according to the above analysis?
timwest
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I would love to have seen 216 in this decline. So far we are at the end of the 7-day decline which ends at today's close (Tuesday, March 18). There is a 5-day mode which kicked in yesterday as day 1, and implies a low on Friday unless the mode is broken (which is at 243). So, I may use a 244 buy stop or I will wait until Friday's close.
timwest
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Look for a bottom on Tuesday next week.
Listrest
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Thanks, looks nice so far.
timwest
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There are 7 days at one price since the high was put in place, and we detached from that 7-day mode on March 10th - implying that is day 1 of a 7-day decline. This is day 5 (Friday, March 14)
Listrest
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I see it goes according to what are you predicting.
When does the bulish start on tsla waiting some feedbacks...appreciated as always.