Note what happens when TSLA shares hit a 2-month high on the indicator "range movement". If you get oversold readings, you get a lower-risk buy signal. On the other hand, when you see a 2-month low on the range indicator, you see opportunities to sell short on rallies.
The CCI isn't oversold yet and earlier today it was closer to 'zero' when it was in the 224 range.
This is a long term forecast with a wide stop, but it is instructional to see that TSLA is still having a much easier time putting together rally days. Now that it is the beginning of a new quarter, it isn't uncommon for Portfolio Managers to lighten up on their winners to test them to see if they hold. The shorts get a break, but they ought to be there ready to buy back their shorts on every dip.
Risk here is wide, but I'll see what I can do to fine tune a specific entry since this signal is old, but working.
Tim 227.76 last -1.67 11:58AM EST
Comments
timwest
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So far, so good...
A-shot
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So if get it correctly, but the time the CCI comes around ~-110, and the oversold signal is hit, if the range movement declines as well (given it continues on consolidating), it will basically be a sell signal as it will be on a 2 month low? Should the stock go up and end up around 240 with RM not lower than 130, it will be a buy signal and TSLA will have a higher chance of rallying, and voiding the previous all time high, possibly on the road to 300?
timwest
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Range Movement is 44 days (highs/lows) and CCI is 21 day, or half the length of the RM.
timwest
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So, you want CCI to be 0 to -100 and RM to NOT BE at a 2 month low.
A-shot
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Indeed, for the bull case. Thanx for the clarification!