Hello Traders Investors And Community, welcome to this important analysis about the current situation facing TSLA. I discovered some interesting and worthful signs which will determine the further outcome. The modern electronic cars developing fast in the worldwide car industry but are they worth it according to price-performance ratio or are they just a marketing gag? Overall it is a fact that demand in the whole car industry gone back due to the corona-crisis and its restriction which provided big deficiencies in consumer-goods but as the restrictions loosening up a little this can also boost the demand up in car-indsutry. The last months and year especially TSLA experienced increasing gains to the upside but to continue with its rise to the upside there are some technical matters which need to fulfill therefore we are looking at the 4-hour chart.
As you can see marked in my chart TSLA is trading at this important falling resistance line which is marked in blue in my chart, this is a meaningful resistance because TSLA bounced already several times at this level and when it goes above it will have a hard time to do so. The more likely scenario at the moment is that we will get a bounce to lower levels before we can consider a new growth period in TSLA. As you can see in my chart we are currently trading above this rising support line in grey which is holding the short-term price consolidation up, when we cross this line to the downside the possibility for a test of the remaining lower support levels increases drastically.
Actual Trading-Zones In The Structure (4-Hour Timeframe):
When the short-time-bearish scenario plays out accordingly we will see the next significant support at the 615 range which you see marked in my chart with the grey-line, there is also a second support factor in this level which is the 300-EMA, together with the FIbonacci-support it is building an coherent confluence-cluster in this area where we will highly likely see a bounce and stabilization. If this doesn't happen the next important support to hold is the 61.8 % Fibonacci-support which is the next worthwhile confluence-cluster together with the 400-EMA in blue. Overall we need to hold either the first or the second level to increase a bullish continuation to the upside when this does not happen and TSLA falls more there is potentially given for a bearish continuation to the downside which needs to keep in mind.
The next time will be a time for TSLA where it has to decide in which direction it will move, the car-industry overall looking more bearish at the moment but TSLA is the major leading company which producing the new electronic cars and therefore it can prosper also in the current corona crisis because more people want to live more sustainable these times which is a fact that shouldn't be passed by. We can see this fact in the catch-up attempts by other big car-companies within the electromobility sector but at the moment TSLA has still the leading technologies and at all increasing demands in cars, it will be highly interesting how this develops further and if the other major car-companies can catch up the electromobility train in prospects.
Thanks for watching everybody, support for more market insight, and a good rest of the weekend! ;) There are many roads to prosperity in the modern economy, but one must be contemplated.
Information provided is only educational and should not be used to take action in the markets.
Comment
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ANALYSIS UPDATE: TSLA completed the inverse head and shoulder formation with a breakout above the neckline to continue with the trend direction.
TSLA after completing the inverse head and shoulder formation reached the target zones.
Nice Analyze. Would you personally short TSLA to the target of 615?
Pooshoes
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@veryarts, thats my first target too, looks like a diamond toping pattern formed which should conclude soon.
Dewnit-Music-Group
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Darkpool says otherwise. Consolidated for weeks and this explosion to the upside will be epic. Above $869.82 on daily chart we see $900 this week and more. Open interest Oct/Sept is the key.
Prizax
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900~ next week
VincePrince
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Post your comments, questions, and ideas about TSLA here.
Hagrawal
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@VincePrince, Thanks for a nice analysis. If i want be an investor with a 3yr horizon in TSLA stock ( i am not holding any stock of TSLA right now) - what could be the right average price level i shall be accumulating over a period of time? This is to bring growth in my current balanced portfolio of MF, Bonds.
marianopolidorimd
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@Hagrawal, 760 was the price for the last big stock offering and its bouncing there pretty quick. Unless we get another market leg down and maybe you can get it for 350 to 45p