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I can't believe I'm saying this but TSLA is setting up to be a nice short. Many have died by these words so I'll take a neutral perspective (I'm a TSLA bull fundamentally) — technically TSLA has 2 gaps lower to fill and seems to be rolling over In a triangle. There are so many interesting things to see in this chart in terms of change of momentum at the top but to keep it simple, I would be short TSLA at the top of down channel here unless momentum breaks pattern up. If pattern breaks up check if it's a fakeout or if it's a real breakout - does it have legs?
I drew two possible lower lines with a strong possibility of neither. I'm not trying to predict anything as much as possibly identify potential patterns. TSLA displaying classic signs of rolling over and while I'm not looking to stay short TSLA for long there may be a nice opportunity to use short term options and lower risk in $ allocated to trade for potential reward. May have a go at this with short term OTM puts - not a large trade but a trade that I'm interested to see play out.
Another interesting thing a trader friend made me aware of (thanks) is the squeeze setup here. I don't trade squeezes religiously like some but I have found them useful enough when trading that I've kept the indicator on my chart. Look at the change in momentum to red from blue as we roll over.
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I drew two possible lower lines with a strong possibility of neither. I'm not trying to predict anything as much as possibly identify potential patterns. TSLA displaying classic signs of rolling over and while I'm not looking to stay short TSLA for long there may be a nice opportunity to use short term options and lower risk in $ allocated to trade for potential reward. May have a go at this with short term OTM puts - not a large trade but a trade that I'm interested to see play out.
Another interesting thing a trader friend made me aware of (thanks) is the squeeze setup here. I don't trade squeezes religiously like some but I have found them useful enough when trading that I've kept the indicator on my chart. Look at the change in momentum to red from blue as we roll over.
30min
1hr
1day
Comment:
With trendline
Disclaimer: This account and post are not intended as trading advice and are for educational and informational purposes only.
Comments
UPDATE: TSLA chart has changed and is now foiled to a point. I did not take this trade although it moved in my way initially. Can’t short TSLA and was technical fun - long Elon!
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@Techreturns, And you can go right ahead and scratch what I wrote. This pennant is in.play.
Note the daily squeeze releasing down in this one at bottom of pennant
Note the daily squeeze releasing down in this one at bottom of pennant
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@Techreturns, new and still learning, but when u say the pennant is in play, what do u mean? i am feeling since we broke below the bottom line in the downward wedge, that we will fall until about 1266 before we get a bounce up (filling that gap).
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@lesbleus98, It means that the price action is respecting the pattern and we should watch for potential breakdowns/outs. You can see that as I thought we bounced off the upper bound line from when I initially posted to now being at the lower bound line of pennant. We are really grinding against the bottom of pennant & are triggering a bearish breakdown really right at my flat line of $1410 from initial post. Below there we have some support in the mid $1300s until $1310; gap fill down starting at $1266 may also be in play but let's watch and see price action.
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Clint, do u really want to short tesla? ahah
Only a market crash can bring down this animal...
I like your explanation though
Only a market crash can bring down this animal...
I like your explanation though
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a lot of the elliot wave theory folks are saying we are starting a big wave 5 up to 2000 now so that it is unlikely we will test 1300-1350 again in the short term, i.e. before battery day. i'm thinking we may need to establish a long position now because we probably will not fill those gaps around mid 1200...thoughts?
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