Here's Why I'm Bullish on TSLA: Smart Money is Buying...Here's Why I'm Bullish on NASDAQ:TSLA Multi-Timeframe Analysis Using Larry Williams' Methods
After a significant downtrend, NASDAQ:TSLA is presenting multiple bullish signals based on Larry Williams' methodology. The weekly and daily timeframes are aligning for a potential reversal opportunity with clearly defined risk parameters.
Weekly Timeframe Analysis
The weekly chart reveals several key bullish indicators:
- The COT Proxy Index shows commercials are buying at significantly higher levels compared to 6 months ago, 1 year ago, and 3 years ago.
- Seasonality patterns have reached a turning point, now indicating the beginning of an uptrend phase
- The WillVal indicator shows NASDAQ:TSLA is currently undervalued at multiple securities (DXY, QCCH, ZBLU all showing "Under")
- ADX reading above 60 (currently at 62.42) signals the existing downtrend is likely exhausting and nearing completion
Daily Timeframe Analysis
On the daily chart, we're seeing initial confirmation signals but still waiting for the optimal entry setup:
- The general market has created a Rally Day, and we're now watching for a Follow Through Day to confirm the new uptrend
- Price structure requires further confirmation through a change of character before entry
- The ProGo indicator has already turned positive, providing an early bullish signal
- Williams %R is showing oversold conditions, suggesting a potential bounce
- We need the Large Traders index to turn its slope upward for additional confirmation
Entry Strategy
I'm looking for one of these entry triggers:
- Primary : First pullback after change of character , using Williams %R for precise timing
- Alternative : Entry on first pullback after price moves above the WillTrend line
- Aggressive option : Entry if price breaks above the $245 resistance level
Profit Targets & Risk Management
Targets:
- First target: $327 (1.27 Fibonacci level)
- Second target: $390 (Larry Williams Target Shooter -> 2.00 Fibonacci level )
Risk Management:
- Initial stop loss: $228 or 120% of ATR(3) from entry point
- Once in profit, trailing stop based on price closes at WillTrend levels
The confluence of indicators across timeframes suggests a significant reversal potential in NASDAQ:TSLA , but waiting for daily chart confirmation will provide a higher probability setup with clearly defined risk parameters.
DISCLAIMER
This analysis is provided for informational and educational purposes only. The ideas and strategies presented should never be used without first assessing your own personal and financial situation. This content is not financial advice and should not be construed as a recommendation to buy, sell, or hold any securities or to engage in any specific investment strategy. All investment carries risk, including the possibility of losing some or all of your initial investment. Past performance of securities, including the patterns, signals, and indicators discussed, is not indicative of future results. The author does not guarantee the accuracy, completeness, or usefulness of any information presented. Each investor should conduct their own research and consult with qualified financial professionals before making investment decisions. Trading Tesla ( NASDAQ:TSLA ) stock involves significant risks that may not be appropriate for all investors. You should only invest funds that you can afford to lose.
