Was today the top of the rally?
I was looking back at Tesla's chart this afternoon to see if the past few day's chart pattern/candlestick formation had previously occurred. Here's what I found:
On October 28th, 2019, almost exactly 2 years ago from today, the same candle we saw today appeared. At the same time in 2019, the 50 day moving average had just crossed above the 200 day moving average. During the rally in late Oct. 2019, Tesla's stock price gapped up big followed by a spike candlestick, like the one we saw today. This spike candle had a higher high than the previous day yet closed lower than the previous day's close. Looking at the volume from Oct. 28th, 2019 the spike candle had nearly the exact same volume as the previous up day. And if we look at today's volume, it was also nearly the same as yesterday's volume.
After the spike candle formed in Oct. 2019, Tesla's stock price pulled back on low volume for about a week. During the pull back, Tesla's stock price traded within the large up candle's base (the one before the spike) . After about a week, Tesla began climbing again and quickly broke the old high formed by the spike on Oct. 28th. Over the next couple months, Tesla's stock price rallied nearly 150%.
What is different today?
While the moving average's are also in perfect sync, like in 2019, Tesla has recently broke it's all time high trading on heavy volume. Typically a heavy volume breakout to new highs is a great sign for bulls.
Will a similar chart pattern formation occur? Let me know what you guys think.
I was looking back at Tesla's chart this afternoon to see if the past few day's chart pattern/candlestick formation had previously occurred. Here's what I found:
On October 28th, 2019, almost exactly 2 years ago from today, the same candle we saw today appeared. At the same time in 2019, the 50 day moving average had just crossed above the 200 day moving average. During the rally in late Oct. 2019, Tesla's stock price gapped up big followed by a spike candlestick, like the one we saw today. This spike candle had a higher high than the previous day yet closed lower than the previous day's close. Looking at the volume from Oct. 28th, 2019 the spike candle had nearly the exact same volume as the previous up day. And if we look at today's volume, it was also nearly the same as yesterday's volume.
After the spike candle formed in Oct. 2019, Tesla's stock price pulled back on low volume for about a week. During the pull back, Tesla's stock price traded within the large up candle's base (the one before the spike) . After about a week, Tesla began climbing again and quickly broke the old high formed by the spike on Oct. 28th. Over the next couple months, Tesla's stock price rallied nearly 150%.
What is different today?
While the moving average's are also in perfect sync, like in 2019, Tesla has recently broke it's all time high trading on heavy volume. Typically a heavy volume breakout to new highs is a great sign for bulls.
Will a similar chart pattern formation occur? Let me know what you guys think.