Hello Traders:)
Let's start by recognizing the overall trend in the electric vehicle sector.
Global sales of electric vehicles have more than doubled in just two years, marking a sixfold increase compared to 2020. Considering the future bans on the sale of gasoline-powered cars, this trend is expected to be sustained and even strengthened in the near future. This provides us with a macroeconomic justification for seeking long-term buying opportunities in this industry. Given the immense growth potential in Tesla, it's worth considering allocating exposure to this market through this particular company.
Currently, Tesla is trading at 66% below its all-time high. Assuming a bright future for this industry, this could translate into significant growth potential.
But is now a good time to enter?
To assess this, we can first look at the Global X Autonomous & Electric Vehicles ETF, which represents the global outlook for potential growth in this sector. I've chosen this ETF because it provides worldwide exposure to this industry.
As seen on the daily chart, the ETF is currently retesting the price breakout from the beginning of the year and the lower market profile from both two months ago and the current month. This creates a very strong demand level, making it an excellent entry point with low risk for potential gains. This opens up the overall opportunity to explore chances in this sector here and now. Instead of going long on this or a similar ETF, it's better to select a single company because the potential for one company's growth outweighs the percentage increase of the entire ETF. Therefore, choosing a dynamically changing stock like Tesla seems like a very sensible solution for maximizing potential profit.
And finally, Tesla itself... It currently appears to be a great moment to accumulate shares before a potential upward rally. This is because we are currently witnessing a retest of the upper band of the yearly VWAP (Volume Weighted Average Price) and the lower band of the monthly Market Profile.
I consider the scenario to have begun after a signal was generated from this point by the Heikin Ashi 1D candles. This could potentially be held for long-term growth or until negative environmental/company news arises. The entry could be negated if there is a clear breakthrough below the upper band of the yearly VWAP. In that case, patience should be exercised in seeking a new entry opportunity, perhaps from within the VWAP or upon a retest and breakout above the upper band of the VWAP.
Additional confirmation comes from the ongoing retest of Tesla's weekly moving average, which can currently be interpreted in the same way as the upper boundary of the yearly VWAP.
Good luck!
Let's start by recognizing the overall trend in the electric vehicle sector.
Global sales of electric vehicles have more than doubled in just two years, marking a sixfold increase compared to 2020. Considering the future bans on the sale of gasoline-powered cars, this trend is expected to be sustained and even strengthened in the near future. This provides us with a macroeconomic justification for seeking long-term buying opportunities in this industry. Given the immense growth potential in Tesla, it's worth considering allocating exposure to this market through this particular company.
Currently, Tesla is trading at 66% below its all-time high. Assuming a bright future for this industry, this could translate into significant growth potential.
But is now a good time to enter?
To assess this, we can first look at the Global X Autonomous & Electric Vehicles ETF, which represents the global outlook for potential growth in this sector. I've chosen this ETF because it provides worldwide exposure to this industry.
As seen on the daily chart, the ETF is currently retesting the price breakout from the beginning of the year and the lower market profile from both two months ago and the current month. This creates a very strong demand level, making it an excellent entry point with low risk for potential gains. This opens up the overall opportunity to explore chances in this sector here and now. Instead of going long on this or a similar ETF, it's better to select a single company because the potential for one company's growth outweighs the percentage increase of the entire ETF. Therefore, choosing a dynamically changing stock like Tesla seems like a very sensible solution for maximizing potential profit.
And finally, Tesla itself... It currently appears to be a great moment to accumulate shares before a potential upward rally. This is because we are currently witnessing a retest of the upper band of the yearly VWAP (Volume Weighted Average Price) and the lower band of the monthly Market Profile.
I consider the scenario to have begun after a signal was generated from this point by the Heikin Ashi 1D candles. This could potentially be held for long-term growth or until negative environmental/company news arises. The entry could be negated if there is a clear breakthrough below the upper band of the yearly VWAP. In that case, patience should be exercised in seeking a new entry opportunity, perhaps from within the VWAP or upon a retest and breakout above the upper band of the VWAP.
Additional confirmation comes from the ongoing retest of Tesla's weekly moving average, which can currently be interpreted in the same way as the upper boundary of the yearly VWAP.
Good luck!
