TSLA: Has finally reached its critical support (D & W analysis)!
TSLA shares have corrected to the support level we identified in our last public analysis, in the vicinity of the green line at $230, between the 50ma and the 200ma. In fact, it looks like the 200ma is serving as our last support, since the price is bouncing right back after hitting this indicator. The link to my previous public analysis is below this post, as usual.
Volume has fallen sharply and TSLA's shares are very weak, as it is the only one among the "magnificent 7" that is not showing any signs of recovery this week.
In two weeks the company will release its earnings report, and this will be an important event, but until then, we don't see any technical signs suggesting a bottom. Yes, the price has reached an extremely important support point, but we need to see confirmation of a bottom signal to believe in a decent recovery.
Despite the signs of weakness, the price is not in a downtrend yet, for that we need to see LHs/LLs. Now, let’s look at the weekly chart:
From a technical point of view, the next resistance is around $300, the previous top. Can TSLA get there? In theory yes, but in practice we need to see a clear bottom signal, as mentioned in the analysis of the daily chart.
You have to admit that if TSLA were going to react, now would be the perfect time, we just need confirmation. On the other hand, if the price loses the critical support point on the daily chart, nothing would prevent a sharper correction on the weekly chart, perhaps to its next support around $207, or even to the support line of its Descending Channel. This would frustrate the breakout of the previous resistance of this channel, characterizing a false breakout, a powerful bearish signal.
If you ask my personal opinion, I wish to see TSLA making a bottom around this support area, as the Risk/Reward ratio for a long trade would be attractive, however, we see no confirmation yet, and there is no meaningful bullish reaction suggesting a possible recovery yet.
I’ll keep you updated on this, so consider following me for more analysis like this, and support this idea if you liked it.
All the best,
Nathan.
Volume has fallen sharply and TSLA's shares are very weak, as it is the only one among the "magnificent 7" that is not showing any signs of recovery this week.
In two weeks the company will release its earnings report, and this will be an important event, but until then, we don't see any technical signs suggesting a bottom. Yes, the price has reached an extremely important support point, but we need to see confirmation of a bottom signal to believe in a decent recovery.
Despite the signs of weakness, the price is not in a downtrend yet, for that we need to see LHs/LLs. Now, let’s look at the weekly chart:
From a technical point of view, the next resistance is around $300, the previous top. Can TSLA get there? In theory yes, but in practice we need to see a clear bottom signal, as mentioned in the analysis of the daily chart.
You have to admit that if TSLA were going to react, now would be the perfect time, we just need confirmation. On the other hand, if the price loses the critical support point on the daily chart, nothing would prevent a sharper correction on the weekly chart, perhaps to its next support around $207, or even to the support line of its Descending Channel. This would frustrate the breakout of the previous resistance of this channel, characterizing a false breakout, a powerful bearish signal.
If you ask my personal opinion, I wish to see TSLA making a bottom around this support area, as the Risk/Reward ratio for a long trade would be attractive, however, we see no confirmation yet, and there is no meaningful bullish reaction suggesting a possible recovery yet.
I’ll keep you updated on this, so consider following me for more analysis like this, and support this idea if you liked it.
All the best,
Nathan.
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💪 Public track record.
