We have presented our short-term view on Tesla (TSLA) 3 weeks ago (see chart below) when we issued a buy signal on the Inverse Head and Shoulders (IH&S) bottom pattern that transitioned into a Channel Up, similar to the Aug 18 - Sep 15 bullish leg, that is very near to hit the $250 target as part of the Lower High formation on the 4-month Channel Down:
On the 1W time-frame, we see that the bullish trend of 2023 is still restricted by a long-term Lower Highs trend-line that started on the week of November 01 2021, which was the All Time High for the stock. If this Lower Highs trend-line (can be also viewed as the top of a Channel Down that only broke during the Dec 2022 - Jan 2023 market bottom formation) breaks, then Tesla most likely restores the bullish trend on the long-term.
It is very likely to do so immediately in the coming weeks as the correction since July can be interpreted as the Right Shoulder of a very wide Inverted Head and Shoulders (IH&S) pattern. If symmetry indeed exists between the two Shoulders, then Tesla aims at $365 long-term.
Since however we like to minimize risks at Tradingshot and take one target at a time, we will initially target $295, which would make a +52.28% rise from the October 30 Low, the lowest registered rise since the Bear Cycle started, and then buy after a pull-back.
Note that the 1W RSI already bounced on the Buy Zone that only failed once to give a rally, during the Dec 2022 - Jan 2023 market bottom formation, while the 1W MACD is close to forming a Bullish Cross, when all previous (three in total) occurrences delivered rallies of over +50%.
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Thank you for beautiful charts. And your detailed explanation and elaboration has taught me a lot. Now I know the levels on my fingers.
bjorn2z
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@D_S007, A long side expectation from the chart show is highly questionable. Why would TSLA breakout out above the descending channel and retest the upper descending and bounce even higher? The fundamentals of TSLA are so bad that the much more likely path going forward is TSLA falling to the lower descending line below 100, breaking through the lower side, retesting with a small bounce and continuing lower below 100 towards 60.
azumahprince
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@bjorn2z, This is a joke! You are just a permabear with wishful thinking!
bjorn2z
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@azumahprince, And how about the multitude to permabulls with their wishful thinking? There is NO fundamental basis to believe that TSLA will break up and above the down sloping overhead line of lower highs since July 2023. Breaking above the down sloping line from Nov 2021 is even more difficult. Not happening.
The 400 level from Nov 2021 is history. Like CSCO from March 2000. Gone gone gone. Never to be seen again.
Evar_Mayi
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Nice 👍🏻
true_Punisher
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I agree , this is an obvious Bear Trap! Tomorrow Friday will rally. Buy shares after hours make sense. This pullback is hedgies game, all fake. Opportunity to accumulate
Bulls2020
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BUY AFTETR HOUR THE BEAR TRAPP......THIS IS A BEAR TRAP. GAP UP Friday in pre market. Cybertruck is reality. Soldi as rock!! 300 will come. Hold it
MyCryptoParadise_Nathan
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The $295 target seems like a prudent initial aim, with the possibility of further gains if the bullish trend is restored. Watching the 1W RSI and MACD for confirmatory signals. 🌴📈🚗