Tesla....dancing on the razor's edge.
Updated
Unfortunately I don't have a horse in this race. Yet. By next week that'll likely change as tesla is balancing on a razor's edge at the moment.
The Volume Flow Indicator and the MACD both show clear divergences, and not the good kind. It's no wonder it's fallen as of late - both of these were stating that it would.
The quarterly S1 line is a big support zone. It's calculated via the pivot points on Tradingview and there are varying lengths such as daily, weekly, monthly... well we're all the way out at Quarterly here. The longer the time frame is, the more substantial it is.
The 200 day SMA... Tesla cut down through it but closed above. We should know by next week whether or not it's going to honor this line or not.
So let's wait until we get a couple more days and we should have a much clearer picture. Did it bounce? Then it's a reasonable assumption price did honor the S1 and the 200 DMA and we can entertain a long position with a stop at the swing low. Did it fall right through both these lines? Then I am going to go short. Hard.
Maybe Elon Musk will mail me a pair of shorts too? Anyone heard this story? channel3000.com/elon-musk-sends-short-shorts-to-detractor/
The Volume Flow Indicator and the MACD both show clear divergences, and not the good kind. It's no wonder it's fallen as of late - both of these were stating that it would.
The quarterly S1 line is a big support zone. It's calculated via the pivot points on Tradingview and there are varying lengths such as daily, weekly, monthly... well we're all the way out at Quarterly here. The longer the time frame is, the more substantial it is.
The 200 day SMA... Tesla cut down through it but closed above. We should know by next week whether or not it's going to honor this line or not.
So let's wait until we get a couple more days and we should have a much clearer picture. Did it bounce? Then it's a reasonable assumption price did honor the S1 and the 200 DMA and we can entertain a long position with a stop at the swing low. Did it fall right through both these lines? Then I am going to go short. Hard.
Maybe Elon Musk will mail me a pair of shorts too? Anyone heard this story? channel3000.com/elon-musk-sends-short-shorts-to-detractor/
Note
It bounced upward hard. I am still waiting to see what happens with that steep downward trend line that has been in place since early January. As of this moment it hasn't broken above it. We may see a retest of that 200day avg, and I am not at all certain it'll stay above it. While Tesla is has definitely been improving, it's fundamentals still come nowhere close to justifying it's market cap. If the market turns back down things like P/E ratios will begin to mean something again. There may still be a LOT of fat left to be trimmed from Tesla.Note
I STILL don't have a horse in this race, and TSLA is again at a strong support line. What will it do? My instinct is it bounces short term, then tests that same line yet again within a month. Mr. Market is extremely hesitant to buy into stocks that are too expensive and Tesla is just that. They could get ripped open like Amazon, so there's just too much risk for me despite the support.
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