Hello Everyone!
TSLA
has been struggling to break above 21 day EMA since it became bearish (in short term) in March when the 21 day EMA fell below the 50 day EMA. One exception happened in April due to sales reports, analyst price targets and earning expectation (?) when it succeeded to go above the 21 day EMA but that move did not sustain as we can see. In May it even went below the 200 day EMA to retest the strong support around $546.
Since then it has formed a wedge structure testing the 21 day EMA multiple times. It is expected that at some point
TSLA
will break out of that structure. Price actions in last 3 days have formed a "variation" of the Morning Star pattern which is signaling towards a bullish move tomorrow or early next week (Friday, June 18 onwards). Whether this move will follow through and the wedge structure will be broken in the upward direction can only be verified by the price actions in coming days. Which will also depend on the economic news and overall performance of
NDX
given the index has hit all time high today.
Assuming that
TSLA
will sustain above 21 day EMA with this move, we can expect it to test recent highs such as price level $635, the $10 Gap fall between price levels $723 & $733 and price level $780.
If in case the upward movement doesn't sustain and the wedge is broken in bearish direction,
TSLA
will again test the support level $546. For now I am leaning towards the bullish position more but the possibility of a false break cannot be overruled given the stock's recent performance.
Hope you will find this analysis useful. Please feel free to post your opinion and support my posts if you find them useful.
Thanks!
TSLA
has been struggling to break above 21 day EMA since it became bearish (in short term) in March when the 21 day EMA fell below the 50 day EMA. One exception happened in April due to sales reports, analyst price targets and earning expectation (?) when it succeeded to go above the 21 day EMA but that move did not sustain as we can see. In May it even went below the 200 day EMA to retest the strong support around $546. Since then it has formed a wedge structure testing the 21 day EMA multiple times. It is expected that at some point
TSLA
will break out of that structure. Price actions in last 3 days have formed a "variation" of the Morning Star pattern which is signaling towards a bullish move tomorrow or early next week (Friday, June 18 onwards). Whether this move will follow through and the wedge structure will be broken in the upward direction can only be verified by the price actions in coming days. Which will also depend on the economic news and overall performance of
NDX
given the index has hit all time high today. Assuming that
TSLA
will sustain above 21 day EMA with this move, we can expect it to test recent highs such as price level $635, the $10 Gap fall between price levels $723 & $733 and price level $780. If in case the upward movement doesn't sustain and the wedge is broken in bearish direction,
TSLA
will again test the support level $546. For now I am leaning towards the bullish position more but the possibility of a false break cannot be overruled given the stock's recent performance. Hope you will find this analysis useful. Please feel free to post your opinion and support my posts if you find them useful.
Thanks!