Where TSLA might be headed 8/9Technical Analysis (TA) Overview:
Trend & Price Action:
Current Price: $200.63, with resistance around $203.38.
Downtrend: TSLA has been in a downtrend as indicated by the descending channel (parallel lines).
Moving Averages:
50 EMA (Green Line): Price is currently testing this level, which might act as resistance.
200 EMA (Purple Line): Located around $220.18, this serves as a significant resistance level if the price manages to break out of the current downtrend.
Support and Resistance:
Support Levels:
$188.53: The price recently found support around this level. If the price drops below this, the next level to watch is around $182.16, which is just above the recent low of $182.00.
Resistance Levels:
$203.38: The current resistance. Breaking above this level could signal a potential reversal or at least a relief rally towards higher resistance levels.
$220.18: The 200 EMA could act as a strong resistance if the price continues to rise.
Volume:
Volume Analysis: Volume is relatively high at 215.306K, indicating strong market participation. If volume increases on an upward breakout, it could confirm a bullish move.
Chart Patterns:
Descending Channel: TSLA has been trading within a descending channel, which suggests a bearish trend. However, the price is near the upper boundary of this channel, which might either result in a breakout (bullish scenario) or a rejection and continuation of the downtrend (bearish scenario).
Potential Scenarios & Strategies:
Bullish Scenario (Breakout Above $203.38):
Entry: If TSLA breaks above $203.38 with strong volume, this could indicate a bullish reversal. Consider entering a long position around $203.50-$205.00.
Target: The first target could be around $220, which aligns with the 200 EMA. If the price surpasses this, further upside towards $235.92 or even $249.89 is possible.
Stop-Loss: Set a stop-loss slightly below the breakout level, around $198.00, to limit potential losses in case of a false breakout.
Bearish/Neutral Scenario (Rejection at $203.38):
Entry: If the price fails to break above $203.38 and shows signs of rejection, consider entering a short position or waiting for a lower entry if you are holding long.
Target: A pullback could bring the price back down to test the support levels at $188.53 or even $182.16.
Stop-Loss: If entering a short position, set a stop-loss just above the $203.38 resistance, around $205.00-$206.00.
Continuation of the Downtrend:
Entry: If the price falls below $188.53 with strong selling pressure, it might continue downwards. Consider shorting or avoiding new long positions until a clear reversal signal appears.
Target: The next support to watch would be around $182.16, with a possible further drop towards $170-$175.
Stop-Loss: Set a stop-loss above $190.00 if shorting to protect against sudden reversals.
Conclusion:
Key Levels to Watch: $203.38 on the upside and $188.53 on the downside.
Strategy: Wait for a decisive move above $203.38 or below $188.53 to enter new positions. If holding a long position, consider reducing exposure if the price fails to break resistance or if it drops below key support levels.