Idea
TSLA just completed a beautiful harmonic reversal pattern known as the “bat” on the 4h chart. The most notable thing about the price structure is how well it has stayed within the boundaries of the actual pattern and the corresponding “bounce” observed once the pattern was completed.
Price Structure
X: 29 Jan '21 12:00 UTC @ 780.00
A: 02 Feb '21 12:00 UTC @ 880.00
B: 04 Feb '21 08:00 UTC @ 830.00
C: 08 Feb '21 08:00 UTC @ 874.30
D: 12 Feb '21 08:00 UTC @ 785.70
Potential Reversal Zone
AB=CD: 10 Feb '21 08:00 UTC @ 810.80
XAD: 12 Feb '21 08:00 UTC @ 791.40
D: 12 Feb '21 08:00 UTC @ 785.70
Conclusion
All three levels in the “potential reversal zone” were triggered after the 12 Feb '21 08:00 UTC candlestick. This signaled a buy in regards to this particular pattern. If you are looking for a short-term trade, then 865.00 will be your target on this. If you are in TSLA for the long haul, then this presents a wonderful buying opportunity considering this pattern completed around the 26D EMA and the RSI on the 4h looks quite promising from a risk/reward standpoint. IMPORTANT...stop loss on this one will be 770.00
TSLA just completed a beautiful harmonic reversal pattern known as the “bat” on the 4h chart. The most notable thing about the price structure is how well it has stayed within the boundaries of the actual pattern and the corresponding “bounce” observed once the pattern was completed.
Price Structure
X: 29 Jan '21 12:00 UTC @ 780.00
A: 02 Feb '21 12:00 UTC @ 880.00
B: 04 Feb '21 08:00 UTC @ 830.00
C: 08 Feb '21 08:00 UTC @ 874.30
D: 12 Feb '21 08:00 UTC @ 785.70
Potential Reversal Zone
AB=CD: 10 Feb '21 08:00 UTC @ 810.80
XAD: 12 Feb '21 08:00 UTC @ 791.40
D: 12 Feb '21 08:00 UTC @ 785.70
Conclusion
All three levels in the “potential reversal zone” were triggered after the 12 Feb '21 08:00 UTC candlestick. This signaled a buy in regards to this particular pattern. If you are looking for a short-term trade, then 865.00 will be your target on this. If you are in TSLA for the long haul, then this presents a wonderful buying opportunity considering this pattern completed around the 26D EMA and the RSI on the 4h looks quite promising from a risk/reward standpoint. IMPORTANT...stop loss on this one will be 770.00
Trade closed: stop reached:
Closed on the 4h below 770.00