TSLA's Path Ahead: Bounce or Breakdown Nov. 6, 2024 Current Trend & Price Action
From the hourly chart, TSLA appears to be in a descending channel pattern, indicating a bearish trend. The stock has been facing consistent downward pressure, with lower highs and lower lows defining its structure over recent sessions. This pattern could signal a continuation of the downtrend if TSLA remains below key resistance levels.
Support & Resistance Levels
Immediate Resistance: Around $246 (top of the descending channel).
Key Resistance Zone: $266 - $273. A break above this area would indicate a bullish reversal.
Immediate Support: Near $239, which aligns with a recent horizontal level and the lower boundary of the channel.
Critical Support Zone: $230 - $235. Breaking below this could open the door for further downside.
Indicators
Moving Averages (15 EMA and 161 EMA): The purple and yellow EMAs show a downward trend, with TSLA trading below both, signaling a bearish sentiment.
MACD: It’s currently displaying a potential bullish crossover. If momentum follows through, this might offer a short-term bounce, especially if TSLA tests the lower channel boundary around $239.
Trading Strategy & Entry/Exit Points
Bounce Play: Look for a reversal signal at the $239 level. If buying pressure increases around this zone, a potential entry near $239-$240 could be viable, with a target at the upper channel boundary near $246 or $250.
Breakdown Play: If TSLA breaks below $239 with strong volume, it may indicate further downside. In this case, short positions could be considered with a target around $235 or lower, watching for support around $230.
Disclaimer: This analysis is for educational purposes only and is not financial advice. Please conduct your own research and trade responsibly.
