We have seen an impressive relief rally from TSLA, this was a bullish leg, inside a bearish trend. Still juicy and very profitable. It made a recent low in the 100's level, where we saw an important volume, which can be characterized as a capitulation on the segment that went from its ATH to the 100's This volume was composed of liquidated long and covered short positions. The volume has been shortening as it reached the top above the 200's level. Usually after a relief rally like this we can expect a retracement looking to gather more lows and discover the next support. If it is above the 100's level we will have a positive momentum divergence + a bullish volume + a double bottom or a W pattern and this is absolutely very bullish. I am bearish on the leg that heads to the double bottom, but I will turn Bullish when this will turn around and heads north after the tree will have been completely shaken.
fair value reached in march 2020, not worth a penny more than 30 bucks and one day everyone will know it. notice the Wyckoff distribution... perfect.
Madrid
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@DaddySawbucks, This is still a momentum and cult stock. The valuation is dictated by the market, and this volume can't be by retail traders, but by institutions. At the end of the day the pattern behaved exactly as predicted. The learning lesson was, don't fight the market, just flow with it.
notice the Wyckoff distribution... perfect.