Just an idea and opinion. We'll see how it turns out ;)
Tesla's stock has seen MASSIVE gains in the recent time frame. In my opinion it's a very unsustainable move and we will have a pull-back now. Where exactly I'm not sure but based on a lot of previous chart data it's evident that Tesla's price loves to bounce through various fib levels as it's been an asset that's been quite volatile and rewarding for traders.
Now it's important to understand that Tesla is a leader in an industry that is very new but necessary. This along with the fact that they have delivered on almost everything they promised to the world is why I am macro bullish on TESLA. They barely released a truck and had people throwing money at them way before being ready in a position to even ship units.
Tesla's level of innovation, credibility, and Elon Musk himself have such a cult-like following, even fans you can say. This is a factor among many others as to why I believe a lot of investors in this stock are emotional, partly contributing to the volatility of the asset.
Now for the technicals:
RSI: Extremely overbought territory, retracement is due especially looking at the blow-off top.
MACD: Extremely overextended and looks very ready to turn down, beginning what could be a very nice move to the downside
Resistance and Supports: Each cycle took roughly the same amount of time in which the stock placed new all times highs and dipped to lows. What stands out to me on top of this is that once TESLA commences its bear trend after putting in its euphoric blow-off top it would eventually make its low and catch support at what used to be the previous all time highs as shown above in the chart, which at the very moment not only lines up with the major support but lines up perfectly with our .786 fib level!
In conclusion I believe it's a great short opportunity that I can't miss as too many technicals are pointing that way. If we do make a retest to the all-time high and post new highs then I will of course change my strategy and update this idea. Let me know what you think. Like and share this idea and I will continue to update as we move forward. Safe trading :)
Tesla's stock has seen MASSIVE gains in the recent time frame. In my opinion it's a very unsustainable move and we will have a pull-back now. Where exactly I'm not sure but based on a lot of previous chart data it's evident that Tesla's price loves to bounce through various fib levels as it's been an asset that's been quite volatile and rewarding for traders.
Now it's important to understand that Tesla is a leader in an industry that is very new but necessary. This along with the fact that they have delivered on almost everything they promised to the world is why I am macro bullish on TESLA. They barely released a truck and had people throwing money at them way before being ready in a position to even ship units.
Tesla's level of innovation, credibility, and Elon Musk himself have such a cult-like following, even fans you can say. This is a factor among many others as to why I believe a lot of investors in this stock are emotional, partly contributing to the volatility of the asset.
Now for the technicals:
RSI: Extremely overbought territory, retracement is due especially looking at the blow-off top.
MACD: Extremely overextended and looks very ready to turn down, beginning what could be a very nice move to the downside
Resistance and Supports: Each cycle took roughly the same amount of time in which the stock placed new all times highs and dipped to lows. What stands out to me on top of this is that once TESLA commences its bear trend after putting in its euphoric blow-off top it would eventually make its low and catch support at what used to be the previous all time highs as shown above in the chart, which at the very moment not only lines up with the major support but lines up perfectly with our .786 fib level!
In conclusion I believe it's a great short opportunity that I can't miss as too many technicals are pointing that way. If we do make a retest to the all-time high and post new highs then I will of course change my strategy and update this idea. Let me know what you think. Like and share this idea and I will continue to update as we move forward. Safe trading :)