TSLA: The split is here! Now what?

Hello traders and investors! So, today is the famous split! But what are the consequences of it?

Well, first and most important, splits don’t change a company’s fundamentals. It is the same old Tesla.

Splits are just a strategy a company uses to increase the liquidity of its stocks and made it more accessible to the public. More than $ 2k on one stock is quite expensive, so, let's split it!

Yes, more people will have access to it, but the speculation will increase as well. In fact, this is one of the reasons why Warren Buffett never did splits on the BRK.A stocks, which are now costing $ 320k! He wanted to keep speculators out of it.

But in the end, there’s no big deal here. You may think that more people will buy it, rising the price of the stock - or you may say that since more people will buy it, the institutions will take opportunity to sell their stocks to the public, book their profits, and it will drop next. It doesn’t matter in the end, anything is possible.

Let’s just stick to the technique, ok?

Tesla is just doing a pullback to the 21 ema in the hourly chart. The trend is still bullish, and nothing changes. This pullback is the reason why the daily chart is so bearish:


This is a Dark Cloud Cover, and if triggered, a sharper pullback might occur. But it could be just the hourly chart resting, so we need to wait for more confirmation.

Again, I’ll say that the most important point right now is the purple line, which is the previous top / resistance. If Tesla closes under this point, then you may just book your profits.

Now, the weekly chart:


There’re no bearish signs around. Triggered what look like a Pennant chart pattern, and the weekly chart don’t tell too much.

I would just rely on the daily chart now for an exit strategy. And if you liked this analysis, please, support it! And follow me for more daily analyses!

Let’s see how Tesla will behave after the split! These are the scenarios for the stock right now, and I hope this idea helped you.

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