Tesla Inc. has rallied from 320-330 USD level towards 340-350 USD level crossing intermediate upper channel which suggests that Tesla Inc. is due to reversal. In addition to that 15min period chart has formed bearish wedge consisting of two smaller bearish wedges visible on 1min, 3min, 5min period charts which resembles chart pattern that formed briefly before reaching previous top around 360-370 USD level. RSI and money flow has increased on 1min, 3min, 5min period charts reaching high upper values. However, money flow has been decreasing on 15min period chart while price of Tesla Inc. has been increasing. This may serve as warning sign of impending reversal.
Disclaimer: This analysis serves as only depiction of notion which may be taken into consideration. Taking trade action based on this analysis is not advised.
Disclaimer: This analysis serves as only depiction of notion which may be taken into consideration. Taking trade action based on this analysis is not advised.
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Tesla Inc. China sales have plunged 70% in month of October.
Source:
www.reuters.com/arti...y-body-idUSKCN1NW0BH
Source:
www.reuters.com/arti...y-body-idUSKCN1NW0BH
Comment:
Please do not mind Elliott Waves on chart. They are not on right spots.
Comment:
Also channels are little bit distorted which has happened as result of me going through different time periods on this particular chart. I apologize, but I have not realized it at the time of posting this analysis.
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Descending triangle forming on 1min period chart confirms continuation of trend. By now you should be at profit around 2 to 3%.
Comment:
Price should be at temporary top within wave of lower degree with technical analysis on 1min, 3min, 5min period chart suggesting soon reversal.
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Price range of 342 USD to 345 USD may serve as entry for new shorts if you have taken profit from previous price action. However, one should be aware of 346.20 USD price level which serves as resistance and exit point if price action takes upward momentum.
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Tesla Inc. has surpassed price level of 346.20 USD. Despite my previous mention of this price level as possible point of exit I still remain very bearish and even more so. Graph has developed very similar pattern that we have seen at previous top at price level between 360 USD and 370 USD. Overall outlook remains bearish.
Comment:
Minor and Intermediate channels should be immediately dismissed.
Comment:
New Minor and Intermediate channels may be drawn only after price plunges below 335.51 USD.
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After removing previous Minor and Intermediate channels, red lines forming bearish wedge can be overextended in order to find actual top near apex of this wedge.
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Little uptick towards 350 USD price level is not unlikely today. However, probability of price being sustainable at this level is very low.
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Technical analysis on daily period chart suggests bearish trend. Money flow and volume has been steadily decreasing since 7th November. Aroon signalizes strengthening downtrend and weakening uptrend. MACD appears below signal line suggesting downtrend.
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Price is approaching top for 4th Intermediate wave. Reversal should begin soon.
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Tesla Inc. has plunged below 340 USD today. However, it did not fall below diagonal support of bearish upward wedge which suggests that uptrend may be still in place and that top of 4th Intermediate wave might be higher than was earlier expected. Uptick towards 350 USD and higher is not unlikely at this point.
Comment:
If upward movement materializes then 345 USD to 353 USD price level should serve as good entry for another short position.
Comment:
Tesla Inc. plunged below support of bearish wedge visible on 1h period chart in early hours of trading. However, 15min and 30min period charts formed bullish wedge which suggested that false breakout was in place. Another run towards 350 USD price range will be in place. At this point 4th Intermediate wave is about to hit its final peak and new shorts may be established in this price range.
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Technical analysis on 1D period graph suggests that money flow and RSI have substantially decreased over last 22 days. In addition to that, volume oscillator shows lower volumes while price is testing new highs. Overall sentiment is very bearish.