Hello traders and investors! Let’s see how Tesla is doing today!
As we’ve been saying, there’s nothing to worry here at all. So far, no top signs, no reversal signs – nothing. If we don’t see any of these signs, the trend will persist, according to Dow Theory, 6th tenet (trends persist until a clear reversal occurs).
Maybe it left another Runaway Gap today, of only 20 cents, and this one is seen in the daily chart. In my previous analysis, we found another breakaway gap, but in the hourly chart, and if you missed it, the link is below.
The fact we have another breakaway gap tells us that the trend is absolutely strong, just like we’ve seen in the past. This pattern, full of gaps, is quite common for Tesla, and it always did it during its explosions.
Let’s see the hourly chart now:
The black line at $ 508 seems to be a support, but it is so far from the price that I find it hard to believe Tesla will drop there now. The recent Runaway Gap should offer support as well, and if it gets filled it’ll turn into a Common Gap.
The 21 ema is also another support point, and we have no bearish patterns at all at Tesla.
If you are really anxious here, just set a trailing stop under the previous day’s low (daily chart), and let it roll.
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