TSLA: Next steps.
Hello traders and investors! So, Tesla hit our target today! The $ 359 proved to be a strong support for the stock. Now, let’s see how to proceed.
First, keep in mind that Tesla is still in a short-term bear trend, and the 21 ema, along with the previous supports, are going to work as resistances next. Right now, TSLA is struggling at its first resistance, which is the blue line in the chart ($398). If this point will be defeated, the price will seek the region between the 21 ema and the red line at $ 408.
If TSLA loses the black line around $ 360 the market will see this rally as a Dead Cat Bounce, and it could drop a little further.
Only the daily chart can tell us better the next targets:
As we already discussed here, the $ 359 is a strong support, and today’s reaction confirms this. If it closes this way, we may see a Piercing Line candlestick pattern, just above a support zone. This would be a good indicator that Tesla could resume its bull trend.
For now, the 21 ema and the red line at $ 408 are going to work as resistances. According to the Principle of Polarity in Technical Analysis, a lost support is going to work as resistance in the future and vice-versa.
So far, all we can say is that Tesla is going to hit its resistances, and if defeated, it will seek further resistances, like the $ 461. Then we’ll see if Tesla will retest the All Time High or not.
On the other hand, if Tesla fails to defeat its resistances, it may drop again to the $ 359 region, and if it trades below it, the $ 329 is the next target.
We are going to have our answer soon, and if you liked this analysis, please, support it! And follow me to keep in touch with my ideas. Every day I share a few thoughts with you.
I wish you all the best of luck.
First, keep in mind that Tesla is still in a short-term bear trend, and the 21 ema, along with the previous supports, are going to work as resistances next. Right now, TSLA is struggling at its first resistance, which is the blue line in the chart ($398). If this point will be defeated, the price will seek the region between the 21 ema and the red line at $ 408.
If TSLA loses the black line around $ 360 the market will see this rally as a Dead Cat Bounce, and it could drop a little further.
Only the daily chart can tell us better the next targets:
As we already discussed here, the $ 359 is a strong support, and today’s reaction confirms this. If it closes this way, we may see a Piercing Line candlestick pattern, just above a support zone. This would be a good indicator that Tesla could resume its bull trend.
For now, the 21 ema and the red line at $ 408 are going to work as resistances. According to the Principle of Polarity in Technical Analysis, a lost support is going to work as resistance in the future and vice-versa.
So far, all we can say is that Tesla is going to hit its resistances, and if defeated, it will seek further resistances, like the $ 461. Then we’ll see if Tesla will retest the All Time High or not.
On the other hand, if Tesla fails to defeat its resistances, it may drop again to the $ 359 region, and if it trades below it, the $ 329 is the next target.
We are going to have our answer soon, and if you liked this analysis, please, support it! And follow me to keep in touch with my ideas. Every day I share a few thoughts with you.
I wish you all the best of luck.
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