TESLA: Tesla sales fall by 50% in Europe! Fear ??
Tesla vehicle sales in the European Union fell by 50.3% in January 2025, compared to the same month last year, according to figures published on Tuesday by the European Automobile Manufacturers Association (ACEA). Specifically, the company sold 7,517 units in the first month of this year, compared to 15,130 vehicles in January 2024, according to EFE.
This drop contrasts, however, with a 34% increase in the purchase of electric vehicles in the EU, up to 124,341 units, so that this type of vehicle represented 15% of the automobile market.
In global terms, new vehicle registrations fell by an average of 2.6% in the community market, with the largest declines recorded in France (-6.2%), Italy (-5.8%) and Germany (-2.8%). Spain, however, was the only one of the four major EU economies in which new vehicle registrations increased, specifically by 5.3%.
--> What is the company's technical aspect?
If we look at the daily graph, the medium-long term trend is still bullish (Bull), but it is in a phase of decline that began on December 17 when it reached highs in the 488 area.
Yesterday, the shares plummeted by -8% due to the news of vehicle sales in Europe, reaching the KEY ZONE of 299 (61.8% Fibonacci + most important dynamic support). From this area, it is MOST LIKELY that there will be an upward rebound, but until this rebound is consolidated and the STRENGTH AND MOMENTUM turn bullish (Bull), the retracement phase will remain active.
--> Which area could be good for entering long positions?
If the price exceeds 383 with the H4 close, we could confirm the end of the retracement and the beginning of a new bullish impulse on the way to highs.
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Strategy to follow:
ENTRY: We will open 2 long positions if the H4 candle closes above 383
POSITION 1 (TP1): We close the first position in the 429 area (+12%)
--> Stop Loss at 349 (-9%).
POSITION 2 (TP2): We open a Trailing Stop type position.
--> Initial dynamic Stop Loss at (-9%) (coinciding with the 899 of position 1).
--> We change the dynamic Stop Loss to (-1%) when the price reaches TP1 ( 429 ).
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SET UP EXPLANATIONS
*** How do we know which 2 long positions to open? Let's take an example: If we want to invest 2,000 euros in the stock, what we do is divide that amount by 2, and instead of opening 1 position of 2,000, we will open 2 positions of 1,000 each.
*** What is a Trailing Stop? A Trailing Stop allows a trade to continue gaining value when the market price moves in a favorable direction, but automatically closes the trade if the market price suddenly moves in an unfavorable direction by a certain distance. That certain distance is the dynamic Stop Loss.
-->Example: IF the dynamic Stop Loss is at -1%, it means that if the price drops by -1%, the position will be closed. If the price rises, the Stop Loss also rises to maintain that -1% on increases, therefore, the risk is increasingly lower until the position becomes profitable. In this way, very solid and stable price trends can be taken advantage of, maximizing profits.
