Here we have a good example why we must trade price, not indicators. We had an incredibly nice advanced breakout on the RSI, which gave us some fantastic trades recently, but now, it didn’t work at all.
As I mentioned, we trade price, and the trigger was the 606, which wasn’t triggered. You guys know that I want to another trade on TSLA, but I’ll only do it when it gives us a clear entry point.
Now Tesla is in a lower support level at 571, but this alone is not enough for me. I must see a better pattern.
Yes, we have a gap at 564, but if Tesla doesn’t close a bullish candle above the 580 tomorrow, I believe it’ll hit the 546. Only time will tell. Meanwhile, I’m an observer for now 😉.
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I find your opinions to be very helpful and well-informed, thanks for sharing them. I decided to stay in TSLA when it was at 630, in the hope of a move to 650ish. Without the bad news regarding vehicle recalls, it might have made it to 650. When it fell to 600 and didn't retake 606...I lost all confidence in the trade and got out right before yesterday's waterfall decline. Still a profitable trade for me but would have been much better if I had gotten out at 630. :)
But I have one question...maybe it shows my ignorance of chart analysis...
It seems your theory on TSLA price movement has been right-on in the absence of unexpected TSLA news coming out. But yesterday's TSLA crash was just that...it was caused by bad news coming out of china. Today's jump in the stock is probably either due to a rise in the NASDAQ in general, or Todd Gordon's bullish thesis on CNBC. Point is, trying to predict the stock based solely on price action only works in an environment without unexpected news coming out...
So, why no mention of the news yesterday that drove the stock down?
UnknownUnicorn21312077
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@statistical_detective, Nice question! As you said, it is useless trying to predict anything, so, let's just use the news in our favor. Usually, they have restricted impact on stocks (but not always), so, there's nothing much to worry about them.
We must focus on how the market is performing, along with the sector, and try to identify the next movement.
I wish you a great weekend! ;)
DiepTranX
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Great Melissa , i have learned from you alot , thanks 😘
UnknownUnicorn21312077
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@DiepTranX, TY! It is good to have you here, mate! ;)
But I have one question...maybe it shows my ignorance of chart analysis...
It seems your theory on TSLA price movement has been right-on in the absence of unexpected TSLA news coming out. But yesterday's TSLA crash was just that...it was caused by bad news coming out of china. Today's jump in the stock is probably either due to a rise in the NASDAQ in general, or Todd Gordon's bullish thesis on CNBC. Point is, trying to predict the stock based solely on price action only works in an environment without unexpected news coming out...
So, why no mention of the news yesterday that drove the stock down?