I ended up closing my short from my 49,875 target. It felt great having the target hit within 10 points and having a perfect long and short entry through this entire 2K leg up/down. But AGAIN, things are back to forming a third structure similar to those since Feb 9th. This is where i start thinking its distribution.
As we near the weekly close, I'll be watching from the sidelines. The market on Monday will be a much better indicator, if we range here until then. If we see another pump, I'd suspect it will reach around 52K and will be sold very quick. The quick selloff is a leading indicator, but the holders just aren't selling off their bags just yet.
WEEKLY SUMMARY:
We're at a very crucial stage in this raising wedge. No trade zone as we near the weekly close. Although, this structure is starting to feel like distribution before the drop, I feel like we have not reached the top again, but this is not a long entry zone. I'll await the "possible" larger weekend pump to the mid 50K's or short the confirmation of a bearish break of the wedge. I will enter a short earlier if the 12/26 MA's cross, which they have not since Feb 1st. I believe this will be the trigger on the 4hr that will send it down...whenever that might be.
THE MARKET:
The bullishness with all the news in the past couple weeks is astonishing. The one thing I know, when we do get that dip, ignore the targets under 30K. I find it very unlikely that Tesla will allow the market to dip past its entry levels from January. However, there are some big funds waiting for entry so I believe we will see a 2-3 month period of correction before hitting above 60K.
As we near the weekly close, I'll be watching from the sidelines. The market on Monday will be a much better indicator, if we range here until then. If we see another pump, I'd suspect it will reach around 52K and will be sold very quick. The quick selloff is a leading indicator, but the holders just aren't selling off their bags just yet.
WEEKLY SUMMARY:
We're at a very crucial stage in this raising wedge. No trade zone as we near the weekly close. Although, this structure is starting to feel like distribution before the drop, I feel like we have not reached the top again, but this is not a long entry zone. I'll await the "possible" larger weekend pump to the mid 50K's or short the confirmation of a bearish break of the wedge. I will enter a short earlier if the 12/26 MA's cross, which they have not since Feb 1st. I believe this will be the trigger on the 4hr that will send it down...whenever that might be.
THE MARKET:
The bullishness with all the news in the past couple weeks is astonishing. The one thing I know, when we do get that dip, ignore the targets under 30K. I find it very unlikely that Tesla will allow the market to dip past its entry levels from January. However, there are some big funds waiting for entry so I believe we will see a 2-3 month period of correction before hitting above 60K.
