Currently TSLA just broke its downtrend and it is retesting the channel resistance, now support. It also formed a bull flag (both bullish signs). However, on its way up, a premature Head and Shoulders Pattern can also be spotted on the micro level, created a hidden bearish divergence, and has a gap to fill to 560 (all bearish signs).
How to capitalize off of Tesla's movement tomorrow?
First, we need more context. Premarket will clear the waters a bit by correlating Tesla's price movement with the major ETF's such as QQQ's and S&P. S&P as of now, broke resistance and looks bullish, QQQ's on the other hand is still consolidating at its downtrend channel's resistance. If it rejects it we should be able to capitalize on TSLA on the downside. If it breaks on good volume there is a big chance Tesla will be bullish.
Scenarios:
*The idea above is my own opinion and does not serve as any kind of investment advice. Please do your own due diligence.*
How to capitalize off of Tesla's movement tomorrow?
First, we need more context. Premarket will clear the waters a bit by correlating Tesla's price movement with the major ETF's such as QQQ's and S&P. S&P as of now, broke resistance and looks bullish, QQQ's on the other hand is still consolidating at its downtrend channel's resistance. If it rejects it we should be able to capitalize on TSLA on the downside. If it breaks on good volume there is a big chance Tesla will be bullish.
Scenarios:
- If TSLA breaks support (top pink line) ~655 on above average volume and the Market shows weakness, I am interested in taking it short with profit targets as seen on the chart.
- If TSLA breaks micro resistance (top green line) ~680 on above average volume and the Market shows strength, I am interested in taking it long with profit targets as seen on the chart.
*The idea above is my own opinion and does not serve as any kind of investment advice. Please do your own due diligence.*