My analysis is ONLY based on recent money movements in Tesla. It does not take into account news, earnings reports and other external factors. I search for clues when smart money is moving into a stock ready to pump it and when smart money is leaving a stock,ready to dump it.
-If we observe Tesla's price action during this year, we notice strong support along the 100 Period Moving Average. All recent corrections were absorbed at the 100 Period Moving Average, indicating strong interest in this stock. September's extreme bubble correction bouncing off the 100Ma confirms this signal.
-We are now in this zone and the stock is showing signs of recovery,waiting for confirmation. We need a GREEN takes out RED along the 100Ma support zone to confirm this signal.
-We also observe a bullish breakout triangle forming with a flag pole, confirmed by higher lows along the 100Ma support. Bullish signal, money is piling up in this stock.
- The 20Ma 200MA gap is reasonably narrow and stable, similar to what it's been throughout this year. This tells us it is mostly buy and hold investors and long term holders that that are in profit. These groups are unlikely to sell, bullish signal.
-The 20 Period Moving Average is pointing down, bearish signal, likely to act as resistance.
-If we look at Nasdaq 100 on a 4 hour chart with these same tools, we notice a VERY bullish signal. 20MA close to the 200Ma but above,curving flat from a correction,likely to head up. 20MA was NOT rejected at friday's close, confirming recovery. A bullish Nasdaq 100 confirms our signal.
Now let's get into our strategy. We need a strong entry point, likely to withstand small correction near the 20MA. We also need a strong exit signal, in case we were wrong and we are correcting further down closer to the 200Ma.
If we observe the price action on friday, we notice the highest volume spike of sellers at 422.67. There was a lot of sellers ready to sell at this price. Price has to break out above 422,67 to confirm our entry.
At the close of the day, we notice a strong selling volume,instantly absorbed by a strong buying volume at 420. There was a lot of buyers ready to buy at this price. A strong green bar, near the 20MA in a price reversal confirms we have a strong protection. Our stop loss is right below that volume spike of buyers, at 419.9
-If we observe Tesla's price action during this year, we notice strong support along the 100 Period Moving Average. All recent corrections were absorbed at the 100 Period Moving Average, indicating strong interest in this stock. September's extreme bubble correction bouncing off the 100Ma confirms this signal.
-We are now in this zone and the stock is showing signs of recovery,waiting for confirmation. We need a GREEN takes out RED along the 100Ma support zone to confirm this signal.
-We also observe a bullish breakout triangle forming with a flag pole, confirmed by higher lows along the 100Ma support. Bullish signal, money is piling up in this stock.
- The 20Ma 200MA gap is reasonably narrow and stable, similar to what it's been throughout this year. This tells us it is mostly buy and hold investors and long term holders that that are in profit. These groups are unlikely to sell, bullish signal.
-The 20 Period Moving Average is pointing down, bearish signal, likely to act as resistance.
-If we look at Nasdaq 100 on a 4 hour chart with these same tools, we notice a VERY bullish signal. 20MA close to the 200Ma but above,curving flat from a correction,likely to head up. 20MA was NOT rejected at friday's close, confirming recovery. A bullish Nasdaq 100 confirms our signal.
Now let's get into our strategy. We need a strong entry point, likely to withstand small correction near the 20MA. We also need a strong exit signal, in case we were wrong and we are correcting further down closer to the 200Ma.
If we observe the price action on friday, we notice the highest volume spike of sellers at 422.67. There was a lot of sellers ready to sell at this price. Price has to break out above 422,67 to confirm our entry.
At the close of the day, we notice a strong selling volume,instantly absorbed by a strong buying volume at 420. There was a lot of buyers ready to buy at this price. A strong green bar, near the 20MA in a price reversal confirms we have a strong protection. Our stop loss is right below that volume spike of buyers, at 419.9