Tesla Charging Ahead: Key Levels and Options Play for Jan. 61. Trend Analysis:
* Tesla has shown a strong recovery after a significant downtrend, breaking out of a falling wedge pattern on the hourly chart.
* The breakout is accompanied by an uptick in volume, indicating buying momentum.
2. Key Levels:
* Resistance: $428 - Major resistance at the gamma wall and recent pivot highs.
* Support: $373 - Strong support where the 2nd PUT wall aligns with recent lows.
3. Indicators:
* MACD: Bullish crossover with expanding histogram bars suggests upward momentum.
* RSI: Rising from oversold levels, approaching neutral territory, leaving room for further upside.
4. Price Action Forecast:
* If Tesla holds above $400, a rally toward $428 is likely.
* Failure to maintain $400 could see a retest of $380 support.
Options Gamma Exposure (GEX):
1. Key Levels:
* Gamma Resistance: $430, with call wall dominance at $450.
* Gamma Support: $380, aligning with the highest net negative exposure.
2. Options Sentiment:
* IVR: 73.3% indicates Tesla options are pricing in higher volatility.
* Calls Dominant: 84% call exposure reflects bullish sentiment among options traders.
Trading Strategy for Jan. 6, 2025:
1. Scalping Strategy:
* Entry: Long above $400 with confirmation of volume support.
* Target: $428-$430 resistance zone.
* Stop Loss: Below $393 to minimize downside risk.
2. Swing Strategy:
* Bullish Setup: Accumulate near $380 with a target of $430-$450.
* Bearish Setup: Short below $373 with a target of $350 if support fails.
Disclaimer:
This analysis is for educational purposes only and does not constitute financial advice. Please conduct your own research and manage your risks appropriately before trading.
