TSLA: How far a correction would be acceptable?Hello traders and investors! Let’s see how TSLA is doing today!
It is correcting a little bit today, as we already expected, since we have an important resistance at this price level. Is this reason to panic? Not at all.
TSLA triggered a bullish pennant, and the trend is bullish in the short-term, meaning, pullbacks are opportunities to buy/add positions. A pullback to the 21 ema or to the red line at $ 819 is acceptable, and this wouldn’t ruin the bullish bias. It could drop beyond this point, but this would ruin the bias and TSLA would need to do another bullish structure to reverse again.
Yesterday, in my previous analysis, I warned you guys about the 21 ema in the daily chart (just check the link below in the "related ideas", if you are curious). This is the important resistance I mentioned in the first paragraph of this analysis. Only by breaking this resistance TSLA might become bullish again in the mid-term. Remember: Unlike the 1h chart, in the daily chart, the trend is still bearish.
However, despite the 21 ema giving us a hard time, the volume is increasing again, and this is good news. Still, it is important to wait for a better bullish structure in the daily chart, in order to confirm a better reversal movement.
For now, we might expect some correction in the short/mid-term, and this would be a healthy movement. Let’s wait for more signs.
I’ll keep you guys updated every day on this, so remember to follow me to keep in touch with my studies.
