Several major tech names are starting to show me confluence and trend patterns that may be signalling a bearish outlook going into the start of 2024.
Firstly, our Fibonacci levels are proving the golden pocket at the 0.618 to be a resistance zone several times for Tesla. We are seeing a push back towards this zone with the formation of a bearish wedge that is more likely to break to the down side than the upside.
Additionally, Tesla vehicles are becoming increasingly more affordable as they continue to slash prices on newer vehicles which may have a negative impact on the overall bottom line for Tesla.
The current yield curve is at the worst level in 40 years, which has historically been a strong indicator for the recession to begin with 12-18 months. We will be approaching that time frame towards the later part of the year which may have a drastic effect on risk assets.
Firstly, our Fibonacci levels are proving the golden pocket at the 0.618 to be a resistance zone several times for Tesla. We are seeing a push back towards this zone with the formation of a bearish wedge that is more likely to break to the down side than the upside.
Additionally, Tesla vehicles are becoming increasingly more affordable as they continue to slash prices on newer vehicles which may have a negative impact on the overall bottom line for Tesla.
The current yield curve is at the worst level in 40 years, which has historically been a strong indicator for the recession to begin with 12-18 months. We will be approaching that time frame towards the later part of the year which may have a drastic effect on risk assets.
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respecting the trendlines
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Be aware of the trendline break / volume profile. Right now the RSI is shooting a bearish signal as we fight this upward wedge resistance trend line.
Levels to the down side marked in yellow.
Levels to the down side marked in yellow.
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TP1
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200 MA showing support and support zone. Short closed. Would likely consider a long here as the market and BTC seems to have some confidence short term.
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If we get a bounce, I would not be surprised if we fill the gap at approx $240 before potentially moving lower. Keep in mind, we have a clear H&S Pattern, while breaking down from a rising wedge. I would only consider re-entering a short around those levels and riding it down to approx $170 golden pocket CC. That is where we may see a wick down to the weekly at $150 completing the head and shoulder target.
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Still bearish on TSLA at the moment. The company was recently downgraded to $146, although I dont think it will go that low. I think my weekly level to 0.618 is more reasonable.
Target: $170 will start averaging into a long position
Target: $170 will start averaging into a long position
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Prepping this trade according to the plan. Short from the gap zone.
Trade active:
short at $240
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The exact trading plan I posted. Yesterday would have been a second chance to short and you would be sitting in huge profits.
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Adding to short at $245
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The bigger picture, we are holding the range point of the control, if we break and lose it then I would remain bearish at the moment.
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Just looks like a bart simpson type pattern to me.. I will likely take most profit around 220 depending on the reaction at the level
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Trade closed manually:
Decided to go ahead close this trade at $230. I feel like the FED FOMC will have a bullish tilt so lets see what the markets decide.
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New Short idea. I like this as the risk is relatively clear. I believe the big name stocks are due for some pullback as rebalancing occurs for 2024 into more growth based / risk assets and small caps.
You can easily keep this trade really tight , and watch for the trend reversal above the invalidation point.
Good luck :)
You can easily keep this trade really tight , and watch for the trend reversal above the invalidation point.
Good luck :)
Trade active:
Short from $264 exactly as per trade plan
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Quite bearish on TSLA at the moment, however there will be great buy opportunities coming up. I will start building positions below $200.
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Here we are , TSLA at $188 something that we have been waiting for. I will start closing shorts and DCA averaging in as we continue lower.
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Will start adding to the position lightly, if we dump to 150/160 I would do a majority add to the position there.
Trade closed: target reached:
Forgot to update this one, but boy did this hit our exact target.
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Getting ready to start buying again. Looking for a few levels below us: $150 and $100!