Trader_Dale

TESLA 🚗 Volume Profile Analysis 📊

NASDAQ:TSLA   TESLA INC
In today’s post, I am going to talk about Tesla ( TSLA ) stock. This stock and revolutionary company is now very popular. It’s price skyrocketed (pun intended) in 2020 from $80 to $500. Isn’t that crazy for a regular stock?

Crazy or not, here is the Tesla on a Daily chart

TESLA: Support around 300.00
There is a pretty interesting zone in the chart. It is a heavy volume area which got formed in July around 300.00.

I think that those heavy volumes that you can see on the Flexible Volume Profile were volumes of strong buyers. Those buyers were adding to their longs there, creating those heavy volumes.

Then they pushed the price even higher, into a crazy strong uptrend.

Now there is a rotation which gets tighter and tighter. But when the price starts to move more again (maybe after the US presidential election?) and if it hits the 300.00 area then I expect that there will be a buying reaction. A buying reaction from the big institutional buyers who were building their Long positions around 300.00.

The 300.00 is the local Point of Control ( POC ) – that’s the place where most of the volumes got traded. It is usually a very important place in any chart.

TESLA: Support around 200.00
Another important price level to notice is the 200.00 (BTW. both these supports are nice round numbers).

This one is based an a Volume Cluster created within a trend. The logic is very similar to the 300.00 Support ( Volume Profile – Trend Setup). The volumes that were traded there were not so heavy though.

To make up for this, there is one more confluence there. It is a confluence with a Price Action setup, which says that a breached Resistance becomes a Support.

As you can see from the chart below, the price nicely reacted to the 200.00 level in the past with a strong rejection. Because of this we know that it was a strong Resistance.

Now, when the price shot past the former Resistance, it became a Support.

It is the combination of the Volume-based setup and the Price Action-based setup that I like the most about this level.

That’s it guys. I hope you liked today’s Tesla analysis. Let me know your thoughts in the comments below!

Happy trading!

-Dale

Comments

Hi Dale. Question re trading volume: Been studying for about a year -- little trades here and there as I keep learning. I'm fairly intelligent, but volume confuses me! I get the concept of supply/demand zones, and it appears your volume indicators support those zones at $200 and $300 level. But are we paying attention to volume in general vs. whether it's stronger selling volume or buying volume? Thanks :)
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Nice to meet you Dale. Yes, with TSLA, volume is the key. I'd say at 11:05am today was good timing on an entry for a long till at least Monday. lol
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@growerik, Hi. Buying volume was extremely high at close. But the chart is flat. What does that mean? Thanks :D
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growerik columbiaaveart
@columbiaaveart, That's a long answer. But short is did you see the market this week? lol. jk. But seriously, relatively speaking volume was not high today at 42M, compared to 118M end of August etc...
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Great job, I think it’s gonna hit $360 today and bounce back up to around 405 tomorrow but will continue to follow the downtrend
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if 3oo comes il be adding. i been adding every drop. r u?
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Excellent work.
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