I have been very, very, patiently watching this trade for a buy entry on TLSA and it has been a couple of months now as you will be able to see from my linked idea. I have used this chart to help me time some SPXU calls due to its inclusion in that index. My linked post will show how I thought this would be resolved a bit quicker in a simple falling wedge but buyers stepped in and now we have a descending triangle .
Price gapped up two days ago right to the resistance of the ray, which is forming the resistance of the ascending triangle with also occurs at the 0.5 retracement level of O to A on the fib chart. We may see some sideways action here for a few more days but I expect this will resolve to the downside.
The targets are based on the same 0 to A retracement and it would take full performance to get price into the previous 4 wave for a bounce. Anything below the low of 4 invalidates the whole pattern but would also mean massive over-performance to the downside. The most likely target technically is probably the 1.618 level. After that we will see if this turns into a bull trap or a massive move to the upside.
I see a lot of bearishness in the equities market and TSLA is a bit of a canary in the coal mime for me for the broader market. If this does resolve as I suppose the next trade after buying the dip would be to sell the previous support of the triangle as resistance. This would make a massive head and shoulders on TSLA and be very bearish for the broader market and the price path charts where I see this ending up if the triangle structure does act as resistance. Suppositions on top of suppositions.
Price gapped up two days ago right to the resistance of the ray, which is forming the resistance of the ascending triangle with also occurs at the 0.5 retracement level of O to A on the fib chart. We may see some sideways action here for a few more days but I expect this will resolve to the downside.
The targets are based on the same 0 to A retracement and it would take full performance to get price into the previous 4 wave for a bounce. Anything below the low of 4 invalidates the whole pattern but would also mean massive over-performance to the downside. The most likely target technically is probably the 1.618 level. After that we will see if this turns into a bull trap or a massive move to the upside.
I see a lot of bearishness in the equities market and TSLA is a bit of a canary in the coal mime for me for the broader market. If this does resolve as I suppose the next trade after buying the dip would be to sell the previous support of the triangle as resistance. This would make a massive head and shoulders on TSLA and be very bearish for the broader market and the price path charts where I see this ending up if the triangle structure does act as resistance. Suppositions on top of suppositions.
Comment:
We are still progressing technically
And I promise every Floridian that you will all be rich... because we're gonna print some more money! Why didn't anybody ever think of this before?
~Nathan Explosion
~Nathan Explosion
