TSLA daily - likley bullish move towards 140-150 area
TSLA is in a very strong decline/down trend. On Friday we gaped down hard close to round number (100$) where TSLA found a lot of buyers and the rest of the day it move up and closed 2.5% up which is a sign of strong bullish momentum. It is very likely institutional players bought up prices from the 100$ level. All that was confirmed with very strong volume, meaning volume confirmed price move - very bullish.
Volume indicates a strong price capitulation and a likely bottom (temporary or permanent) which is bullish.
RSI is extremely oversold which is bullish and also there is a bullish divergence meaning the price is falling which is relatively straight and is not what is bullish.
MACD histogram has smaller and slammer ticks while MACD lines are trying to cross the signal line, in which case would indicate strong bullish momentum.
Overall: TSLA had a strong fall and price consolidation and its growth to the 139/150 area (FIB 0.382 0.5) and the upper line of the channel (blue line), and 20 days MA is very likely. Only a strong daily close above that area of resistance could take TSLA out of trouble. Also as 5, 15, 100, and 500$ (round number) represent the strongest psychological areas from which TSLA had bounced this week, it is likely it will be very powerful support which could not be able to break from the first time, especially not now when TSLA is so oversold. Also, it breaks out of the mini falling vedge which is extremely bullish.
Due to such a strong fall and capitulation, subsequent testing of the bottom is likely, which as a rule should be at a lower volume. If it will be on a smaller volume, it is possible that it is a permanent bottom on TSLA. On the other hand, if the volume will rise when testing the bottom, a new lower bottom around the levels of previous years is possible (red dashed line).
Volume indicates a strong price capitulation and a likely bottom (temporary or permanent) which is bullish.
RSI is extremely oversold which is bullish and also there is a bullish divergence meaning the price is falling which is relatively straight and is not what is bullish.
MACD histogram has smaller and slammer ticks while MACD lines are trying to cross the signal line, in which case would indicate strong bullish momentum.
Overall: TSLA had a strong fall and price consolidation and its growth to the 139/150 area (FIB 0.382 0.5) and the upper line of the channel (blue line), and 20 days MA is very likely. Only a strong daily close above that area of resistance could take TSLA out of trouble. Also as 5, 15, 100, and 500$ (round number) represent the strongest psychological areas from which TSLA had bounced this week, it is likely it will be very powerful support which could not be able to break from the first time, especially not now when TSLA is so oversold. Also, it breaks out of the mini falling vedge which is extremely bullish.
Due to such a strong fall and capitulation, subsequent testing of the bottom is likely, which as a rule should be at a lower volume. If it will be on a smaller volume, it is possible that it is a permanent bottom on TSLA. On the other hand, if the volume will rise when testing the bottom, a new lower bottom around the levels of previous years is possible (red dashed line).
Trade closed: target reached:
Exit half from position. We gaped up above 20 days MA and we are at resistance. TSLA didn't bounce as expected (much stronger and faster bounce was expected), while stop loss will be placed just below 20 days MA
Trade closed: target reached:
Exit the second half at the blue falling trend line. The market is too sensitive to stay in a trade and at the same time my target is reached.
Small income trade: enter in trade 117.54. The first half was an exit at 126.32 (7.5%) and the second at 128.89 (9.7%). Income trade of 8.6%
Small income trade: enter in trade 117.54. The first half was an exit at 126.32 (7.5%) and the second at 128.89 (9.7%). Income trade of 8.6%
Consistency is the key of success....
I am not giving it too much chance for a further strong-up move. There is the possibility that big players will wait for the report before stronger buying.