Hello traders and investors! Today’s movement was very impressive, indeed! Let’s see what’s going on here, but first, I invite you to follow me to keep in touch with my daily analyses! I’m every day here, to share a few thoughts with you, and I’m sure you’ll find something good around.
Today’s movement was impressive, but not all surprising if you read my latest Tesla analysis (link below). We said here that the odds were that Tesla would defeat this green line at $ 1.8k, since we are in a strong bull trend.
Now, today’s candlestick is a very powerful one, since it is defeating its resistances and it did a new ATH. The volume is very good, and only a strong bear rection would spoil this movement.
Even if the bears react, a pullback to the purple trendline would be very healthy, and the bull trend would remain strong.
Tesla is repeating its usual pattern: Accumulation, runaway gap, explosion, repeat. When this happens, is quite hard to nail a good pullback, because the buy force is too great to let the price slip a little, and who wants to buy Tesla, will have to pay a higher price for it. There’s no other way – at least for now. But all this increases the odds of a strong upward movement, because it is how Tesla usually behaves.
Now, the weekly chart:
It seems we have a mix of Pennant with Double Bottom here, but either way, both chart patterns were triggered. At the same time, it seems we have a bullish pivot triggered.
Now, the stock is resuming its trend and we will need to wait for the next accumulation period to buy Tesla. There are absolutely no sell sign around, but if one is about to appear, now would be a good moment, since we are still close to a resistance level. And before I forget, would you please support this idea? Since you are still here, you must've found this idea interesting, right? Again, follow me if you want more analyses like this!
The price must close this week’s candlestick above the green line, so we can have a better confirmation of the following movement.
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@Nathan_Black, thank you what price point do you see this going tomorrow?
Nathan_Black
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@significantExp70032, Our trading style is reactive, not predictive. You'll never see me doing forecasts here, ok?
But since the momentum is bullish, long trades are favored.
altinAdam
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You were right. Solid analysis! I appreciate you on here. Thanks for the chart and explanation. I learn from your candle analysis style.
I was concerned and insecure about holding the Tesla because I was thinking the pattern looked alot like a distribution chart i keep handy. Are there tell tale signs that differentiate these?
Nathan_Black
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@altinAdam, Hey Adam, I appreciate your support! It means a lot!
Well, if you ask me, there are no reasons to be worried here. We are in a strong bull trend, and there's nothing else to do in a bull trend than to buy when you see the first pullback. If the sideways movement has low volume, then probably is just an accumulation, not distribution, as there are no players dumping their stocks.
So, who bought it, are just holding it, and the price will rise as there're few people selling and a lot of people that want to buy. The market is constantly playing with our emotions, and can be very stressful sometimes. Just calm yourself, because the odds are in your favor!
My best regards!
altinAdam
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@Nathan_Black, thanks for the input. i will keep these things in mind.
Best
Adam