TSLA Rally: What's Next?Tesla is currently trading within an upward channel on the 1-hour chart. This channel suggests continued bullish momentum, but we should remain cautious of potential pullbacks as it approaches the upper trendline.
Price Action Analysis:
Channel Formation:
TSLA is respecting an upward trend channel. The current price action is near the upper boundary, indicating possible overextension and potential for a pullback.
Watch for a retest of the mid-channel trendline (around $318-$320) as a key support level. If it holds, it may provide a solid bounce opportunity for scalping.
Support and Resistance Levels:
Immediate Resistance: $328.71 (upper channel line). Breaking above this level with volume could push the price toward $335-$340.
Immediate Support: $322-$320 (mid-channel line and EMA support). If it breaks below this, expect a test of the $310-$312 area.
Key Levels Below: $294.07 is a strong support zone, aligning with previous consolidation and a psychological level.
Volume Profile:
Increasing volume with each leg up indicates strong buyer interest. However, be cautious of a volume divergence if we see decreasing volume on higher prices, suggesting weakening momentum.
MACD and Momentum Indicators:
The MACD on the 1-hour chart is extended but shows no signs of bearish crossover yet. Keep an eye on a potential bearish crossover, which could signal a short-term pullback.
RSI (not shown but inferred) is likely nearing overbought territory. Consider this when planning for scalp entries and exits.
Scalping Opportunities:
Look for quick scalps at the key intraday levels:
Long Entry: Around $320-$322 with a tight stop below $318, targeting a quick move back to $328.
Short Entry: If it rejects off $328-$330, consider a short scalp targeting the $320 support.
Swing Trade Ideas:
A strong daily close above $330 could set up a swing trade toward the $340 level, given the recent bullish momentum.
Conversely, a break below $320 could lead to a deeper pullback, targeting $310-$312 for a
swing entry.
Disclaimer:
This is for educational purposes only and not financial advice. Please perform your own research before making any trading decisions.
