TeslaUpdated TSLA: Descending Wedge Breakout or Continued Weakness?
TSLA is forming a descending wedge pattern, hinting at a potential breakout. With clear support and resistance levels, traders can look for opportunities in both directions. Here’s a detailed plan for scalping and swing trades based on Tesla’s current price action.
Technical Overview:
Market Structure:
Trend: Downtrend with higher lows beginning to form, suggesting potential bullish reversal.
EMA Levels: Price is approaching the 9 EMA (purple) and 21 EMA (blue), indicating a potential test of resistance.
Key Levels:
Resistance Zones:
$321.50 – Immediate resistance near the descending wedge boundary.
$344.50 – Key resistance from prior highs.
$362.50 – Upper resistance and psychological level.
Support Zones:
$302.50 – Immediate support near the wedge’s lower boundary.
$285.00 – Strong demand zone and previous low.
$250.00 – Major support and key demand area.
Supply and Demand Zones:
Demand Zone: $302.50–$285.00, where buyers have shown interest.
Supply Zone: $321.50–$344.50, with heavy selling pressure evident.
Indicators:
MACD: Shows bullish divergence with increasing momentum on the histogram.
Volume: Increasing volume near $302.50 indicates buyer interest.
Pattern:
Descending wedge with potential for a breakout above $321.50.
Game Plan:
Scalping Plan (1-Min and 5-Min Timeframe):
Entry for Long:
Buy on breakout above $321.50 with strong volume.
Target 1: $325.00 (scalp to next resistance).
Target 2: $330.00 (mid-supply zone).
Entry for Short:
Sell if price rejects $321.50 or breaks below $302.50.
Target 1: $300.00 (psychological level).
Target 2: $285.00 (demand zone).
Stop Loss:
Long: Below $319.50.
Short: Above $323.00.
Swing Trade Plan:
Bullish Scenario:
Buy if price holds above $302.50 and breaks above $321.50.
Target 1: $344.50 (major resistance zone).
Extended Target: $362.50 (upper breakout zone).
Stop Loss: Below $300.00.
Bearish Scenario:
Sell if price breaks below $302.50 with momentum.
Target 1: $285.00 (demand zone).
Extended Target: $250.00 (psychological support).
Stop Loss: Above $305.00.
My Thoughts:
For Scalping: Focus on breakouts or rejections at $321.50 for quick trades, using volume confirmation as the key signal.
For Swing Trades: Price action near $302.50 is critical. A breakdown suggests further downside, while a breakout above $321.50 signals bullish continuation.
Directional Bias:
Short-term: Neutral, with a bullish bias if $321.50 breaks convincingly.
Mid-term: Bearish unless price sustains above $344.50.
Actionable Suggestions:
Monitor $321.50 for breakout or rejection signals.
Use $302.50 as the key support for both scalping and swing entries.
Avoid trading within the $302.50–$321.50 range to minimize noise.
Disclaimer:
This analysis is for educational purposes only and not financial advice. Always use proper risk management when trading.
Technical Overview:
Market Structure:
Trend: Downtrend with higher lows beginning to form, suggesting potential bullish reversal.
EMA Levels: Price is approaching the 9 EMA (purple) and 21 EMA (blue), indicating a potential test of resistance.
Key Levels:
Resistance Zones:
$321.50 – Immediate resistance near the descending wedge boundary.
$344.50 – Key resistance from prior highs.
$362.50 – Upper resistance and psychological level.
Support Zones:
$302.50 – Immediate support near the wedge’s lower boundary.
$285.00 – Strong demand zone and previous low.
$250.00 – Major support and key demand area.
Supply and Demand Zones:
Demand Zone: $302.50–$285.00, where buyers have shown interest.
Supply Zone: $321.50–$344.50, with heavy selling pressure evident.
Indicators:
MACD: Shows bullish divergence with increasing momentum on the histogram.
Volume: Increasing volume near $302.50 indicates buyer interest.
Pattern:
Descending wedge with potential for a breakout above $321.50.
Game Plan:
Scalping Plan (1-Min and 5-Min Timeframe):
Entry for Long:
Buy on breakout above $321.50 with strong volume.
Target 1: $325.00 (scalp to next resistance).
Target 2: $330.00 (mid-supply zone).
Entry for Short:
Sell if price rejects $321.50 or breaks below $302.50.
Target 1: $300.00 (psychological level).
Target 2: $285.00 (demand zone).
Stop Loss:
Long: Below $319.50.
Short: Above $323.00.
Swing Trade Plan:
Bullish Scenario:
Buy if price holds above $302.50 and breaks above $321.50.
Target 1: $344.50 (major resistance zone).
Extended Target: $362.50 (upper breakout zone).
Stop Loss: Below $300.00.
Bearish Scenario:
Sell if price breaks below $302.50 with momentum.
Target 1: $285.00 (demand zone).
Extended Target: $250.00 (psychological support).
Stop Loss: Above $305.00.
My Thoughts:
For Scalping: Focus on breakouts or rejections at $321.50 for quick trades, using volume confirmation as the key signal.
For Swing Trades: Price action near $302.50 is critical. A breakdown suggests further downside, while a breakout above $321.50 signals bullish continuation.
Directional Bias:
Short-term: Neutral, with a bullish bias if $321.50 breaks convincingly.
Mid-term: Bearish unless price sustains above $344.50.
Actionable Suggestions:
Monitor $321.50 for breakout or rejection signals.
Use $302.50 as the key support for both scalping and swing entries.
Avoid trading within the $302.50–$321.50 range to minimize noise.
Disclaimer:
This analysis is for educational purposes only and not financial advice. Always use proper risk management when trading.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.