Technicals are Looking Grim for TSLA
Ugly Technical Picture
This week, TSLA experienced a swift selloff. It looked like we were going to see a rebound off of the bottom of a long-term downward price channel. But that proved not to be the case after Monday's huge selloff that was followed by new 52-week lows. We even saw a reverse head and shoulders pattern with a bullish breakout to the upside of the neckline. The bulls couldn't hold the price up.
False Rebound
I was hoping to see TSLA rebound all the way to the top of the long-term price channel seen directly below. If we don't see another rebound very soon, then from a technical standpoint, things look very grim. More downside is likely to follow.
Support Zone?
The next major area of support sits around a couple of long-term fibonacci levels. This is near the 160 - 165 area. Fibonacci levels can act as strong support levels, especially the longer-term Fib levels.
If we dont see a rebound very soon, like tomorrow, then this support zone is the closest strong area of support to watch for the next potential rebound.
Conclusion
A part of me tells me that I want to buy TSLA at these relatively low prices. I actually got in early after the price climbed above the neckline of the reverse head and shoulders pattern that I mentioned. I couldn't help myself. Call premiums were dirt cheap. I sure didn't hold that position long.
One rule I try to always follow is, "don't fight the trend." The trend is downward like we saw in the long-term downward price channel. So, based on how the chars look, I believe we will see more downside.
I wouldn't even consider a long position until we see some type of bottoming pattern. Or if we see a substantial positive catalyst, and TSLA's price starts to rip substantially, then I might consider a long position. After all, TSLA is way down from 52-week lows and even further away from all-time highs. If you are a fan of TSLA like me, then things look extremely discounted at this point.
So, do you think TSLA will rebound soon? Or do you think that there is a lot more downside to go?
Good Luck Trading
As always, I am not a financial professional, and this is not investment advice. Be careful and be patient. Dont anticipate the market. Rather, participate in the market. Don't invest money that you can't afford to lose. Give some of your investments time and know when to cut your losses.
Don't be greedy. Don't invest in anything you don't understand. Don't put all of your eggs in one basket. Don't listen to the hype. Don't fomo or panic into or out of trades. Do your own due diligence. And just follow the trends. A trend is your friend. Good luck trading.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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SpyderCallOP : @MonkeyGee
Check it out
Cow Moo-ney : Very good sharing
SpyderCallOP Cow Moo-ney: Thanks
AbdulK : A comprehensive analysis that is consistently accurate. Notably, the advice provided after 'Good Luck Trading' is a valuable reminder for all market participants. The market will always exist, and opportunities to profit from individual stocks arise frequently. Therefore, it is crucial to avoid succumbing to fear of missing out (FOMO) and instead conduct thorough due diligence and maintain discipline. These practices will contribute to long-term success. Thank you @SpyderCall.
@Ripper, this aligns with the advice you have consistently provided to me.
JonSnow : the factory in Germany also looks grim
SpyderCallOP JonSnow: Definitely negative sentiment from those headlines.
SpyderCallOP AbdulK: Ripper is cool.
I like that guy.
Markio1315 : thanks for the insight.. for me, i will "short" at key resistance.. this has more headwinds, given the extremely weak China sales market which fuel their revenue. China is world biggest consumer of EVs, even their market share is eroding in Europe.
ZnWC : I think there's an error; 52 week low is 152.37 USD on 27 April 2023.
MonkeyGee SpyderCallOP: What a great analysis! Now I have confirmation that I'm not seeing things. many thanks for the thorough analysis!
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