Hello traders and investors! How are you today? Let’s study the most recent movements on Tesla.
As I’ve been telling you guys, there’s absolutely no reason to worry here. The trend is bullish and there’s still nothing indicating that it will change.
It is curious to notice that our studies on the volume was right, and Tesla was accumulating during the past few days. A sideways movement with low volume is a characteristic of an accumulation, according to Dow Theory 5th Tenet: “The Volume Must Confirm the Trend”.
Now, Tesla did a breakout from this previous ATH with volume increasing suddenly, so, the momentum continues strong as ever.
As long Tesla continues doing ascending tops and bottoms in the hourly chart, the trend will continue very bullish in the daily chart as well. Speaking of daily chart:
The daily chart is still very bullish, and the volume was quite high today as well.
Now, exit strategies: If I were in Tesla right now, I would just set my exit point under the purple line, which is the previous resistance/top. If Tesla closes under it, just book your profits.
It also almost coincides with our trailing stop technique at the previous candlestick low, meaning you can book you profits tomorrow, if Tesla loses the $ 2,142.50. So, the region at $ 2,127 - $ 2,142.50 is very important for Tesla, and we already discussed about it yesterday. Now we must see if Tesla will keep the price above this level.
If it loses again this line and closes under it, then we will see a sharper pullback. But again, these are just “ifs”, and so far, there’s nothing confirming a pullback. So, no need to panic, ok? Everything here is going according to technical analysis.
And of course, another good exit strategy is to wait for a bearish pivot in the hourly chart. No pivot? No need to book profits! But I believe the $ 2,127 is more important right now, as it was a previous ATH, and now should work as support.
These are nice strategies to use, and I hope this analysis helped. In this case, support this idea, and follow me for more analyses! I do daily analyses, and I’m sure you’ll find something interesting around.
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Thank you for continuing to monitor TSLA. My mom would talk about TSLA more times than not and I started buying at +/- $1000 in May
and to this day I remain nervous. FOMO keeps me from selling. Your analysis is great too. The 22nd Tenet is when this drops, the charts
will tell you after the fact. Still holding. Now I will see it through the split. My understanding is it will be locked for trading later today until
Tuesday, and it might get nasty Tuesday. Keep up the good work!
Nathan_Black
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@Hanaumapaul, Yeah, I'll do an analysis focusing on the split today! But the idea here is that there's no reason to be anxious, the chart will tell you the best moment to exit, according to your own anxiety level. There're multiple strategies to use.
But the bias is bullish for sure.
Stay safe, Hanaumapaul!
and to this day I remain nervous. FOMO keeps me from selling. Your analysis is great too. The 22nd Tenet is when this drops, the charts
will tell you after the fact. Still holding. Now I will see it through the split. My understanding is it will be locked for trading later today until
Tuesday, and it might get nasty Tuesday. Keep up the good work!