Yesterday, 27 January 2021, after market, Tesla reported. The reaction to the report gave the final sell signal; the sign that the bubble is about to burst.
If we look at the chart since 2018 we see a sideways movement up until the beginning of 2020. Since 2020 Tesla is moving in a steep uptrend. Since the beginning of 2020 the price has roughly ten folded. In my opinion a big bubble has formed since 2020. To quote CNBC: "Tesla’s market capitalization has increased by more than $500 billion in 2020, and the company is now worth about as much as that of the nine largest car companies globally, despite selling a small fraction of the volume of cars that they do."
If we look at the indicators we see that since the beginning of 2020 a divergence with RSI and Di + is forming. Since November 2020 Tesla is up trending within the uptrend. This trend within the trend broke yesterday. Today we gapped down out of this uptrend. MACD also gave a sell signal.
i just think tesla is great product but also great great bubble.....will go down down with time
Trojans08
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What if it's just consolidating like it did in August
j00run
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@Trojans08, off course that could happen, so if you want to trade this idea, it's better to start small and built up your position when the rising support line of the uptrend (bold line in chart) is broken.