TSLA: Pullback Ahead?The TSLA chart presents an intriguing mix of bullish momentum and potential resistance challenges on both the daily (1D) and hourly (1H) timeframes.
On the daily chart, TSLA has been on a strong upward trajectory, as evidenced by the pronounced rally from early May. The price has consistently traded above the 21-day EMA, reinforcing the bullish sentiment. The stock has recently made several gaps, a bullish indicator that often signifies strong upward pressure. However, the main resistance at $265.13 is a significant hurdle. The price tested this level but was unable to close above it, suggesting that sellers are defending this area. A successful breach and close above $265.13 could signal further upside potential, potentially driving the price towards the next psychological level around $270.
The hourly chart provides additional context to the recent price movements. The stock is riding a steep upward trend line, which aligns with the broader bullish trend seen on the daily chart. This trend line, along with the 21-hour EMA, has provided solid support, aiding the stock's climb. However, the price is currently testing the resistance at $265.13. The recent candlesticks show some hesitation, indicating that the bulls are facing significant selling pressure at this level. If the stock can break above this resistance, it would confirm the continuation of the bullish trend. Conversely, a failure to breach this level, combined with a break below the trend line, could trigger a short-term correction. In this scenario, it could close the open gaps, as gaps work as targets when a reversal occurs, or maybe seek the 21-day EMA again.
In conclusion, while TSLA's overall trend remains bullish, the key resistance at $265.13 on both the daily and hourly charts is critical. A sustained move above this level could propel the stock higher, maintaining the bullish momentum. However, a rejection at this resistance and a break below the hourly trend line could suggest a potential pullback. We should closely monitor these levels to gauge the next directional move for TSLA.
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“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.
