TSLA ready to bounce fast

NASDAQ:TSLA   Tesla, Inc
TSLA is probably one of the most famous bubbles that we had in this last bull market. Yes, it's probably one of the future car companies and more, but it was extremely overpriced.

Few months ago the algorithm showed a marvelous Head and shoulders pattern which usually predicts the end of a trend.

This october we had a confirmation of the break of this pattern and then we projected the price objective (black).

The price objective for a head and shoulders pattern is calculated by taking the distance between the head and the neckline (in the case of a top) or the shoulder line (in the case of a bottom) and projecting it downward (in the case of a top) or upward (in the case of a bottom) from the point where the neckline or shoulder line is finally broken. This distance is then added to (in the case of a bottom) or subtracted from (in the case of a top) the breakout point to give the price objective.

Consequently, the price objective for this pattern is between the range of 100-110$ where we also see previous volume and support and resitance levels in the 108$ zone. This worked fine and seems that it started bouncing. We should see the price rallying to 150 or even a bit more if the bounce is hard enough.

Anyway, if the price is back to the 100-110$ range seems a nice moment to buy with low risk and a potential fast return. Take care, this is not yet a bullish reversal for the long term trend, so we could see lower prices in the future but seems a great moment to take advantage of this pattern.
We are timing here the long entry.


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