TSLA: A Powerful Inflection Point! (D&W ccharts Analysis).Since our last study, TSLA shares have lost important support levels, which we previously warned about here on TradingView. But what now? What can we expect next and what are the next key points to keep an eye on?
Daily Chart Analysis:
On the daily chart, Tesla's price exhibits a notable recovery after a significant drop, with a subsequent rally encountering resistance around $206, where a gap also appears. This region serves as a double resistance point which could be critical for future price actions. If Tesla fails to break through this resistance, it could see renewed selling pressure, potentially leading the price to test lower support levels. The gap represents a swift price change, which often acts as a psychological barrier for traders and could influence future trading behavior around these levels.
Weekly Chart Analysis:
The weekly timeframe provides a broader view, showing Tesla's price encountering resistance at the 21-week Exponential Moving Average (EMA). This moving average often serves as a dynamic resistance in trending markets, and its current position above the price reinforces the strength of the resistance level. The inability to sustain above this EMA suggests a bearish sentiment in the longer term. If the price continues to respect this EMA as resistance, it could potentially lead to further declines, aligning with the bearish signals from the daily chart.
Overall Implications:
Both charts collectively indicate that Tesla is at a critical juncture. The convergence of the gap and EMA resistance levels on different time frames suggests that Tesla's stock might experience significant volatility. Let's watch these resistance levels closely, as a decisive breakout above could signal a potential change in trend, whereas failure to overcome them might extend the bearish momentum, all the way down to the next support at 167.75.
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Remember, real trading is reactive, not predictive, so let's stay focused on the key points described above and only trade when there is confirmation.
“To anticipate the market is to gamble. To be patient and react only when the market gives the signal is to speculate.” — Jesse Lauriston Livermore
All the best,
Nathan.
