$TSLA strong - Will it clear 305, 309?
Look at the daily candle for 13Sep and you would have no idea that U.S. markets tanked on the same day. This is relative strength, and it shows in today's price action as well (see smaller timeframes).
There is a recent inverse H&S pattern, shown by the peach zigzag arrow. In order to move higher, buyers must move price over 304-305 (volume shelf) and then clear 309. That leaves a volume gap which should quickly see price reach 320.
RSI and stochastic, as shown in yellow circles, indicate strength and room for price to move higher. Note that %K (gray line) may zigzag but %D is still rising and if it crosses over 80 then TSLA should see the late buyers come in.
* RSI LESSON (14-day) - On 4 Aug RSI moved over 70, which indicates bullishness. When RSI turned down with price, it stopped just over 40 (green bar) and turned back up. 35-40 is a bull support zone. RSI showed buying strength when it held 40 and moved back over 50 without retesting this level as price kept rising.
*** Note: TSLA crossed 304 and drew in sellers at 306 while I was writing this. Watch for a pullback to 302 on smaller timeframe if you want to buy calls and check indicators for a good trade setup. It may drop lower if market retreats in the afternoon. (based on 30m chart)
There is a recent inverse H&S pattern, shown by the peach zigzag arrow. In order to move higher, buyers must move price over 304-305 (volume shelf) and then clear 309. That leaves a volume gap which should quickly see price reach 320.
RSI and stochastic, as shown in yellow circles, indicate strength and room for price to move higher. Note that %K (gray line) may zigzag but %D is still rising and if it crosses over 80 then TSLA should see the late buyers come in.
* RSI LESSON (14-day) - On 4 Aug RSI moved over 70, which indicates bullishness. When RSI turned down with price, it stopped just over 40 (green bar) and turned back up. 35-40 is a bull support zone. RSI showed buying strength when it held 40 and moved back over 50 without retesting this level as price kept rising.
*** Note: TSLA crossed 304 and drew in sellers at 306 while I was writing this. Watch for a pullback to 302 on smaller timeframe if you want to buy calls and check indicators for a good trade setup. It may drop lower if market retreats in the afternoon. (based on 30m chart)
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