TSLA here in on a 30-minute chart. It is in a channel that has as its basis the 42 ( 7x6) EMA
with the upper and lower bands the 2.618 Fibonacci extensions of the basis value. Accordingly
when hitting the lower band, there is a high probability of reversal to trending up. Conversely,
when hitting the upper band, the price is highly probable to reverse into trending down. Here
TLSA is actually outside that Fibonacci band and getting closer to the absent 4.33 band
TSLA rose more than 5% in the last trading day. Reversion to the mean may apply.
The True Strength Index indicator shows a cross about to occur in the supply /resistance zone
a confirmation expectant for a reversal. Similarly, the Fisher transform shows the signal and
mean lines crossing and inflecting into a negative slope at the top red line. In the immediate
term history, TSLA ran up on Thursday 4/27 / Friday 4/28 hit the upper Fibonnaci band and
dropped after the weekend. I can see this as repeating
Aside from mathematics from the all-important trader psychology side of things, a large #
of traders are up on their position having made it through some downward price action
and then reaccumulation. It is now time to take full or partial profits and close some positions
In the meanwhile, short sellers can see the rise in the last trading
session as a pullback in the trend down and time being ripe to add to their position.
Other short sellers might liquidate and in doing so hold TSLA's price steady in buying to cover.
I can't see the psychology underway. I can however see the indicators and the mathematics
that is their foundation. I will take a trade of put options expiring 5/19 at a strike of
$175. I will watch for a reversal of the reversal mid to late week and upon seeing
it take a partial profit and hold the rest.
with the upper and lower bands the 2.618 Fibonacci extensions of the basis value. Accordingly
when hitting the lower band, there is a high probability of reversal to trending up. Conversely,
when hitting the upper band, the price is highly probable to reverse into trending down. Here
TLSA is actually outside that Fibonacci band and getting closer to the absent 4.33 band
TSLA rose more than 5% in the last trading day. Reversion to the mean may apply.
The True Strength Index indicator shows a cross about to occur in the supply /resistance zone
a confirmation expectant for a reversal. Similarly, the Fisher transform shows the signal and
mean lines crossing and inflecting into a negative slope at the top red line. In the immediate
term history, TSLA ran up on Thursday 4/27 / Friday 4/28 hit the upper Fibonnaci band and
dropped after the weekend. I can see this as repeating
Aside from mathematics from the all-important trader psychology side of things, a large #
of traders are up on their position having made it through some downward price action
and then reaccumulation. It is now time to take full or partial profits and close some positions
In the meanwhile, short sellers can see the rise in the last trading
session as a pullback in the trend down and time being ripe to add to their position.
Other short sellers might liquidate and in doing so hold TSLA's price steady in buying to cover.
I can't see the psychology underway. I can however see the indicators and the mathematics
that is their foundation. I will take a trade of put options expiring 5/19 at a strike of
$175. I will watch for a reversal of the reversal mid to late week and upon seeing
it take a partial profit and hold the rest.
Trade active:
TSLA rose in the premarket and then fell back after the opening of the trading week. Overall consolidation without trend.