Hello traders and investors! Let’s take a look at Tesla today!
Despite the drop, TSLA just did a pullback to its 21 ema in the hourly chart, no big deal. The problem would be if it loses this 21 ema, as the next support level will be the gap area, around the $ 658 , which is also the red line at previous top.
Tesla must react quickly in order to avoid this scenario and resume the bull trend. But the idea of a pullback is interesting if you look at the daily chart:
So far, Tesla is doing a Dark Cloud Cover pattern just under the resistance at the black line ($ 689.33). Not by coincidence, the gap seen in the hourly chart, which is near the red line at $ 658, is also very close to the 21 ema in the daily chart. What’s more, if we draw a Fibonacci Retracement from the Jul 8’s low to today’s top, the 50% retracement is quite close to this price level too:
The area around $ 658 has everything to be relevant in the short/mid-term, and it will be the best place to Tesla react and do a bullish reversal pattern. It doesn’t matter which side you are (long or short), this is a relevant key point for you to keep an eye on.
We’ll see how Tesla will react if it hits there. Meanwhile, remember to follow me to keep in touch with my daily updates, and support this idea if you liked it!
Good analysis yesterday that is playing out. Now that its touching 658 level, would you go long?
FLIPPIN_TIGERKING
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Jeez it filled that son of a gun fast! Fook!!
atisss33
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Good stuff Nathan, as aways! I'm also expecting that gap to be filled first before continuing the uptrend. Btw, like that you started to use fibo retracement!
Nathan_Black
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@atisss33, Thanks, Atis! I always used Fibonacci, but I don't overuse it to not make the charts polluted.
All the best to you!
CowabungaDad
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Another great analysis! Thank you for sharing!!!
Nathan_Black
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@CowabungaDad, Thank you for your trust, my friend! Have a great day!
seanmsis
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Nathan, Thank you sir! Really appreciate it! Sean
Nathan_Black
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@seanmsis, You are welcome, Sean! I always appreciate your support!