TSLA reversed up from a failed bear breakout and sell climax. The bulls have closed the exhaustion gap and created several potential breakout gaps around 200. The bulls now have a 60% chance of creating a second leg up and test of the middle of the upper trading range around 300. The bears need a strong breakout below the 180 higher low. The probability of this is 40%.
Once prices get back into the 260-360 trading range, prices will once again return to a 50/50 directional probability. If the bulls continue to get strong consecutive closes, and the bears do not get any strong selling pressure, the probability will slightly favor the bulls for a test of the high of the range.
To learn more about how to determine the directional probability and how to create a trade based on this, please see below.
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