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Tesla May Rip Toward $1000

NASDAQ:TSLA   TESLA INC
Yesterday, U.S. equities closed in the positive after posting losses early in the trading session. It was an impressive rally off the lows, with strong buying across the board. Notably, market leaders such as Tesla and Zoom were able to hold support during the decline, further cementing the bullish case for more gains in the coming weeks. This morning we look at Tesla ( TSLA ), Zoom (ZM) and the SPDR S&P 500 trust ( SPY ).

Elon for President

Elon was all over the news this week when news broke that he was reopening the Tesla Fremont factory despite restrictions. This act was viewed as heroic and as stupid by others. In my view, go Elon! Below is the daily chart of TSLA .


I am on the record of being bearish TSLA two weeks ago. I'll never hide a call here. I was wrong! What we see on the chart is obvious consolidation and higher lows being established. There is a lower high, but I chuck that out as FOMO buyers.

With volume in decline, along with price being supported by the 20 SMA and the appearance of an ascending triangle . The TSLA chart primed for continuation to the upside. The question now remains, how much upside?


Above, is a 4-hour chart of TSLA . Here, I place my proposed Elliott wave count. If you are not familiar, wave 4 consolidations tend to be triangular. TSLA is within a potential ascending triangle and could be setting up for one last push higher before a correction.

I think the TSLA chart will test and potentially break its all-time high. The 1000 psychological resistance could be a logical area where selling comes in strong. This morning I look to buy any dips. Bias: Bullish.

Zoom Remains a Leader

I have been watching ZM very closely over the past week and full disclosure, I have bought some stock as of yesterday. Sometimes simple is better. The chart below is ZM on the 4-hour.


Another ascending triangle. There are probably loads of other stocks with this same pattern but the reason why I like ZM and TSLA is because eyes are all on these companies. People want a piece of what is hot. If price ends up breaking out to the upside with only blue skies above... just use your imagination. Bias: Bullish.

Sorry Bears

The only explanation of what is happening in the stock market is irrational exuberance. Instead of fighting it, let's play it to our advantage. Below is the 4-hour chart of the SPY .


The buying off the low yesterday suggests that the interim low is in and the trend remains intact in favor of the bulls. More proof? The charts above. The market leaders have not retreated nearly as much as a bears would have wanted. It is simply too difficult to trade this market to the downside. Don't over think it. Bias: Bullish.

I'll be back later today with an analysis on the weekly candle close. Happy trading!

Comments

On TV newsletter and no comments? Nice Idea, I agree with you, interesting how some companies are thriving in this situation while others are barely surviving!
+2 Reply
DailyClose RedArtic
@RedArtic, I haven't gotten today's newsletter yet! Thank you for the comment. This week is pivotal. Though, lets see if Tesla can rebound as the daily candle closes!
Reply
Thanks for writing out your thoughtful analysis and sharing this chart with everyone @DailyClose. This idea was featured in the TradingView Weekly Digest.
+1 Reply
DailyClose TradingView
@TradingView, it was exciting to see that. Thank you!
Reply
Very interesting and informative for the Traders,Thank you
+1 Reply
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