Tesla: the bubble is about to burst
Yesterday, 27 January 2021, after market, Tesla reported. The reaction to the report gave the final sell signal; the sign that the bubble is about to burst.
If we look at the chart since 2018 we see a sideways movement up until the beginning of 2020. Since 2020 Tesla is moving in a steep uptrend. Since the beginning of 2020 the price has roughly ten folded. In my opinion a big bubble has formed since 2020. To quote CNBC: "Tesla’s market capitalization has increased by more than $500 billion in 2020, and the company is now worth about as much as that of the nine largest car companies globally, despite selling a small fraction of the volume of cars that they do."
If we look at the indicators we see that since the beginning of 2020 a divergence with RSI and Di + is forming. Since November 2020 Tesla is up trending within the uptrend. This trend within the trend broke yesterday. Today we gapped down out of this uptrend. MACD also gave a sell signal.
If we look at the chart since 2018 we see a sideways movement up until the beginning of 2020. Since 2020 Tesla is moving in a steep uptrend. Since the beginning of 2020 the price has roughly ten folded. In my opinion a big bubble has formed since 2020. To quote CNBC: "Tesla’s market capitalization has increased by more than $500 billion in 2020, and the company is now worth about as much as that of the nine largest car companies globally, despite selling a small fraction of the volume of cars that they do."
If we look at the indicators we see that since the beginning of 2020 a divergence with RSI and Di + is forming. Since November 2020 Tesla is up trending within the uptrend. This trend within the trend broke yesterday. Today we gapped down out of this uptrend. MACD also gave a sell signal.
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