Now that the Battery Day is behind, and the hype is diminished, Tesla might be forming a reversal pattern with a mid-term target of $300. With this prospect, we can open a short position at $415 which is around upper line of a reversal pattern triangle.
Until price reaches that level, we can use a short-term opportunity to open a long position at $380 as the price touches MA200 second time and is currently in oversold area (see RSI).
Until price reaches that level, we can use a short-term opportunity to open a long position at $380 as the price touches MA200 second time and is currently in oversold area (see RSI).
Trade closed: target reached
Closed LP as it's reached the target $415.Note
With the LP target reached, we can wait for RSI to climb into overbought area to open a short position which would be around $430 with a target at $360 level. Plan B is to wait for a price to break $400 level support and open short from that level with the same target.Note
I have incorrectly mentioned a symmetric triangle to be a reversal pattern while it's a continuation pattern instead. However it doesn't change our set up. Now the price hitting $450 level, we might see a pull back to triangle area.
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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.