TSLA is changing character, and we are under bullish market flow. This is the cleanest inverted head and shoulders pattern. Personally, I don't typically look at the market this way, but you can see the accumulation that happened before the shakeout—that's the shoulder. The head is the shakeout, and the other shoulder is currently being formed. This price action appears to be institutional. Look at the current RSI—it just reversed from extreme oversold levels. The price is currently accumulating around the 20, 50, and 200 EMAs.A news catalyst is expected in about two weeks. The price isn’t likely to leave this zone without a sweep, though it shouldn't be as extreme as the previous one that set our bottom. We do have some sell-side liquidity around $167. I’d like to see the price run that sell-side and reach into the demand zone around $160. My stop is set a few dollars above my entry point, but if the price drops below $160 and holds, I’ll go to cash and try to catch the next swing low.
Let’s see what the price does in these high liquidity zones. I’m loading up the boat on this next sweep down. It's time to ride these waves as they flow upstream.
Tesla is the most undervalued company in the market. With all the negative sentiment in the social realm, it makes it much easier for smart money to buy in. As Buffett said, "Buy the fear."
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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.