TSLA Technical Analysis with GEX Insights-Jan 8Price Action and Technical Observations:
1. Trendline Support/Resistance: TSLA has formed a descending pattern, with a key trendline resistance overhead, while attempting to hold support levels near $375. Below this, $370 is critical.
2. Key Levels:
* Support Zones: $375 (major) and $370 (next line of defense).
* Resistance Zones: $400 psychological barrier and $414 (breakout level).
3. Indicators:
* MACD: Shows bearish momentum but is nearing a potential crossover, suggesting consolidation.
* Volume: Selling pressure is evident, but lighter volume at support could indicate exhaustion.
Gamma Exposure (GEX) Analysis:
1. Call Resistance: Strong gamma resistance at $425 and $445 indicates selling pressure as TSLA approaches these levels.
2. Put Support: Heavy put open interest is evident at $385 and $375, suggesting strong downside protection here.
3. Implied Volatility (IV): IVR at 77.8 indicates heightened demand for options, with significant hedging activity.
4. Directional Bias: Calls dominate the gamma exposure at 77.8%, hinting at potential attempts for short-term recovery if buying activity aligns.
Trading Scenarios:
Bullish Case:
* Trigger: Break above $400 with volume and MACD crossover confirmation.
* Target: $414 initially; extended target to $425 if momentum builds.
* Stop Loss: Below $385.
Bearish Case:
* Trigger: Failure to hold $375 support.
* Target: $370 and potentially lower towards $360.
* Stop Loss: Above $385.
Conclusion:
TSLA is at a critical juncture with strong put support near $375 and heavy gamma resistance at $400-$425. A break of these levels will likely set the tone for the next major move. The IV and GEX data suggest high hedging and a potential short-term reversal, but caution is advised in this volatile range.
Disclaimer: This analysis is for educational purposes and does not constitute financial advice. Always perform your own due diligence and manage your risk.