TSLA Breaks Key Levels! What’s Next for Bulls and Bears? Jan 14Technical Analysis Overview:
4-Hour Chart:
* Trend: TSLA has broken a descending trendline, signaling a potential bullish reversal.
* Indicators:
* EMA (9/21): The price is trading above the 9 EMA and 21 EMA, indicating bullish momentum.
* MACD: Shows a bullish crossover, with increasing momentum in the histogram.
30-Minute Chart:
* Price Action:
* Recent price action shows a strong move above the $405-$410 consolidation zone.
* The stock faces resistance around $420-$426, aligning with the next CALL GEX wall.
* Volume: Rising volume supports the upward breakout, indicating strength.
Key Levels to Watch:
Support Levels:
* $405: Previous breakout level, now immediate support.
* $395: Gamma level with significant PUT support.
Resistance Levels:
* $420: Strong resistance, aligning with CALL GEX.
* $426: Major resistance, coinciding with the 2nd CALL Wall.
GEX Insights:
Key Gamma Levels:
* Positive Gamma Walls (Resistance):
* $420: 26.44% GEX7.
* $426: 27.65% GEX8 (3rd CALL Wall).
* Negative Gamma Levels (Support):
* $380: Significant PUT Wall (-9.19% GEX).
Options Metrics:
* IVR: 74.5, indicating implied volatility is relatively high.
* IVx: 70.2, slightly below the average, suggesting some cooling.
* Call/Put Bias: 64.8% Calls dominate, showing bullish sentiment.
Trade Scenarios:
Bullish Scenario:
* Entry: Above $420, targeting $426-$430.
* Stop-Loss: Below $405 to mitigate risk.
Bearish Scenario:
* Entry: Rejection at $420, targeting $405-$395.
* Stop-Loss: Above $426 to limit losses.
Directional Bias:
* The breakout above the descending trendline and strong GEX metrics lean bullish in the short term. Watch for a decisive move above $420 for continuation.
Conclusion:
TSLA's recent breakout signals potential bullish momentum, supported by rising volume and strong options flow. However, the $420-$426 resistance zone is critical. Traders should monitor for sustained moves above $420 for bullish confirmation or rejections for short opportunities.
Disclaimer:
This analysis is for educational purposes only and does not constitute financial advice. Always do your research and manage risk effectively.
