Nobody knows. Despite the good fundamentals (revenue did not drop in Q2!) the stock continued the consolidation it started pre-earnings. The good news is that RSI is still relatively "hot" — RSI 50 level has been acting as on/off switch, so let's see if TSLA flips it again. The triangle we are in currently is probably not to be taken too seriously as TA pattern because we got pretty deep into the apex and this usually invalidates the pattern significance.
If we see re-tracement, $1000 (-30%) should be reliable level of support.
If you fancy fibonacci levels, the current consolidation is happening at the 161% level (coincidence!?).
If I had to bet for my life I'd bet bullish for the following reasons:
- news about the new factories in Germany and Texas fluctuate (we price future growth with TSLA)
- put/call ratio has been steadily dropping and poor bears seem to be running out of capital, while for TSLA it's easier than ever to get fresh capital
unless Elon tweets something ultimately stupid (again), we'll see upwards move and chances to revisit the $1000 level are very slim. I'd go all in if we hit that level and I'm not the biggest TSLA fan. Dips will be bought.
If we see re-tracement, $1000 (-30%) should be reliable level of support.
If you fancy fibonacci levels, the current consolidation is happening at the 161% level (coincidence!?).
If I had to bet for my life I'd bet bullish for the following reasons:
- news about the new factories in Germany and Texas fluctuate (we price future growth with TSLA)
- put/call ratio has been steadily dropping and poor bears seem to be running out of capital, while for TSLA it's easier than ever to get fresh capital
unless Elon tweets something ultimately stupid (again), we'll see upwards move and chances to revisit the $1000 level are very slim. I'd go all in if we hit that level and I'm not the biggest TSLA fan. Dips will be bought.
Comment:
upon further inspection — I'm not sure how credible the put/call indicator I'm using is. IB show different numbers (ratio is fluctuating around 1.75 since Feb, so practically irrelevant)
Comment:
Figured it out. The put/call indicator I use above looks at volume, not open interest.