Caution needed for Tesla, Heres the Macro TA reason whyHello.
Tesla on the 1 month timeframe warrants caution. Larger timeframe always dictate larger % moves for longer periods of time. And its something to always consider when trading and investing, i know i do.
Tesla has made strides as one of the best performing companies ever to exist. Thats a given and no one can say other wise. Evaluated at 1.5 Trillion.
But regardless no company, no asset is exempt from the grasps of market uncertainty created by human psychology and market algos. We must always consider all angles at all times or so help the market, we could face losses.
Some signs are showing that indicate a potential for continued sell off owing to the fact that bears may have gained control of late and could be winning the macro game as of now.
With literal day left before the Month of February candle close. We are nearing in on a close below a 4 Month long Support level of $427.00 ish.
With the likelihood of reaching the $400.00 psychological lvl for a major showdown of support.
Signs existed way in advanced of a Sell wall existing to crush demand. Dec. 2024 monthly candle indicates a massive sell off with massive upper wick.
Nov. and Dec. 2025 candles also printed with Upper wicks indicating sell pressure.
The $400.00 lvl is crucial and potentially where Bulls can step in again. Whole rounded numbers is just what humans like. And its where entries have been placed. So its an area where we need to keep an eye on as well. Whether a bounce back to continue uptrend or a breakdown to lower prices.
21 EMA is another safety net for long positioners. With it making its way up, watch where the purple line goes and if and when price reaches it, how it interacts.
Watch if 21 EMA reaches the $400.00 lvl. If this is the case we now have 2 supports converging. Will help the Bull/ Bounce case.
If these 2 can't hold price, TSLA can reach as low as the Uptrending Macro Support Line(Blue).
An indicator that i always gauge at on the Macro is the STOCH RSI. Great way to observe momentum shifts. AND it looks like a Bearish cross/ momentum signal is eminent. If you look left of everytime we have crossed down and notice price action, it has always indicated price drops to a T.
Only way to avoid is for a bull cross to show up which requires demand to come back to TSLA.
The reasons mentioned require awareness to TSLA and to observe what comes next. Further evidence needs to be sought out as well. Which i will be doing.
If you liked what you read, like, follow. I will be putting up more updates on TSLA as this progresses.
Short
