Hi Guys thought id put out this idea.
Just for educational purposes & also my dad owns TSLA (majority of which he bought at higher levels) so i did this to see if i can advice him a bit with my limited knowledge, safeguard some of his capital.
But alot going on in my snap shot
Lets start from price action to indicators.
Firstly, in my opinion real bullishness in terms of major trend would be price action against the major red trendline that originates from Nov-2021 and ofcourse taking out previous highs. Which we are no where near.
So currently we've made huge recovery and that Red hammer candle from 1st week of Jan could be the bottom at least for now. If we close tomorrow with this engulfing candle, that would be real good.
We are however getting close to 2 major MA i follow. The 200SMA and 21EMA for longer timeframes. With how macro shapes out, ie. how the Fed moves and overall strength of broader markets like SPY, DXY, this could turn to resistance. Keep watch.
Im also liking the volume spike (last time we had these levels were in march 2021) and the decent sized wick of the hammer candle showing maybe bottom buying? That $100.00 level is a nice psychological level.
Just note, if things turn to more negative news, not much structure holding us up under $100.00 if we re-test and we could go down to $60.00
Now indcators:
1st - Is the RSI - WE bounced up from major oversold conditions and broke through our intermediate red trend line that has been bearish since 09-2022. We've moved above the MA of the RSI which is nice, if we stay above we can keep moving higher in prices, provided we make higher highs and higher lows on this indicator. We are now battling the yellow major major trendline that dates back from 11-2021. If we can confirm and it become support, thats a great sign.
2nd - MACD which is a momentum indcator. As you can see bearish momentum is decreases as shown by the yellow sloped line. AND we are getting close to a cross, if it crosses thats bullish. And adds to uptrend momentum.
3rd - Is the Stoch RSI which is also a momentum indcator - We are currently crossing above the 20 level which is indicative of bullish momentum, however we havent closed it yet. If tomorrow we are above the 20 level and we close the weekly above. That is great sign.
Conclusion:
The green highlighted area was a nice place to buy shares. If you did Kudos to you, my dad did as well to decrease his average cost. I would say however, don't be stingy. This could be an area to sell some. If i was holding i would absolutely take profit. As we must also consider overall macro situation and are still in a bear market.
This is not financial advice. I am not a financial advisor.
Hope this was insightful. Please do comment and let me know what you think. Please correct me also if theres any mistakes. As this is for educatinoal purpose. Thanks.
Just for educational purposes & also my dad owns TSLA (majority of which he bought at higher levels) so i did this to see if i can advice him a bit with my limited knowledge, safeguard some of his capital.
But alot going on in my snap shot
Lets start from price action to indicators.
Firstly, in my opinion real bullishness in terms of major trend would be price action against the major red trendline that originates from Nov-2021 and ofcourse taking out previous highs. Which we are no where near.
So currently we've made huge recovery and that Red hammer candle from 1st week of Jan could be the bottom at least for now. If we close tomorrow with this engulfing candle, that would be real good.
We are however getting close to 2 major MA i follow. The 200SMA and 21EMA for longer timeframes. With how macro shapes out, ie. how the Fed moves and overall strength of broader markets like SPY, DXY, this could turn to resistance. Keep watch.
Im also liking the volume spike (last time we had these levels were in march 2021) and the decent sized wick of the hammer candle showing maybe bottom buying? That $100.00 level is a nice psychological level.
Just note, if things turn to more negative news, not much structure holding us up under $100.00 if we re-test and we could go down to $60.00
Now indcators:
1st - Is the RSI - WE bounced up from major oversold conditions and broke through our intermediate red trend line that has been bearish since 09-2022. We've moved above the MA of the RSI which is nice, if we stay above we can keep moving higher in prices, provided we make higher highs and higher lows on this indicator. We are now battling the yellow major major trendline that dates back from 11-2021. If we can confirm and it become support, thats a great sign.
2nd - MACD which is a momentum indcator. As you can see bearish momentum is decreases as shown by the yellow sloped line. AND we are getting close to a cross, if it crosses thats bullish. And adds to uptrend momentum.
3rd - Is the Stoch RSI which is also a momentum indcator - We are currently crossing above the 20 level which is indicative of bullish momentum, however we havent closed it yet. If tomorrow we are above the 20 level and we close the weekly above. That is great sign.
Conclusion:
The green highlighted area was a nice place to buy shares. If you did Kudos to you, my dad did as well to decrease his average cost. I would say however, don't be stingy. This could be an area to sell some. If i was holding i would absolutely take profit. As we must also consider overall macro situation and are still in a bear market.
This is not financial advice. I am not a financial advisor.
Hope this was insightful. Please do comment and let me know what you think. Please correct me also if theres any mistakes. As this is for educatinoal purpose. Thanks.
Comment:
We are hitting the top of my red box. I am now advising my dad to sell some to keep cash in his IRA. * this is not financial advice, i am not a financial advisor* Do your homework before you make your own financial decisions.
