TESLA: How Promising Is the Possible Bullish Breakout?
Updated
TSLATESLA so far has proven everyone wrong. Hopefully the new earning report and announcements will attract new/existing traders and investors to overpower the market again. As far as technical analysis goes, I think we will need to see a few more bullish candlesticks to call it a proper breakout.
In terms of momentum build up and a proper squeeze in the 'Bollinger Bands' before the breakout the view so far is pessimistic. New push in the volume and price action is a must to convert it into a breakout.
Bollinger Bands & Stochastic RSI indicators are used to study the pattern of momentum in the market. Different types of momentum are also depicted to speculate the duration and size of the possible bullish breakout. The hourly time frame is adopted to keep consistency with the previous idea I posted (linked).
Please let me know your opinion. I will greatly appreciate it.
Note
So far the pessimism turned out to be true. I am just adding the following observation to this idea. On a 4 hour time frame TESLA stock price tends to bounce off the 50 MA in regular interval. This is exactly where the price landed today. Will it bounce off or continue falling? It will be interesting to see.
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