TradeStation

Tesla Has an Outside Day

NASDAQ:TSLA   TESLA INC
Tesla has obviously had an amazing run. This morning it spiked as high as $2,129, more than 900 percent above its 52-week low one year ago.

But TSLA hasn’t held that level. Its high occurred in the first minute of trading, and prices quickly knifed under $1,940. That’s resulting in a large outside candle on the daily chart .

This is a potential reversal pattern – especially when it occurs at a big round number like $2,000. Happening early on a Monday is also a potential sign of capitulation buying from retail investors submitting market buy orders over the weekend.

TSLA’s stock split, which takes effect next Monday, August 31, is the big catalyst. While this can definitely be a positive for a high-flying technology name, the euphoria may be priced in after TSLA rose more than 50 percent on the news. (It was announced after the close on August 11.)

Today’s candle is similar to the July 13 failed breakout (also on a Monday). TSLA and several other big Nasdaq stocks drifted for a month after that session. Traders may want to start looking for a deeper pullback in TSLA , and not buy the dip too quickly if sellers take charge.

Comments

The equity value on this is only slightly beyond absolutely ridiculously stupid.
Reply
good analysis. good caution
Reply
Thanks for analysis. I appreciate the explanation! it is always good to hear a good perspective on traders' psychology and explanations for the price movement and patterns such as you noticed with the monday market orders.
Reply
Home Stock Screener Forex Screener Crypto Screener Economic Calendar About Chart Features Pricing Refer a friend House Rules Help Center Website & Broker Solutions Widgets Charting Solutions Lightweight Charting Library Blog & News Twitter
Profile Profile Settings Account and Billing Referred friends Coins My Support Tickets Help Center Private Messages Chat Sign Out