Tesla has moved into an extremely volatile range where bulls have managed to double tap the top of the range twice, failing to break out each time. This is a sign of weakness that I believe should be taken into consideration for long term TSLA strategies.
The Andrew's Pitchfork is anchored at an abstract point to avoid the gap-up fractals that are seen on the daily chart with traditional candles. The pitchfork validates much more strongly from the position shown and it shows TSLA price action interacting with the centerline.
According to econo-physics principals such as the Von Restorff effect and Hausdorff dimension, TSLA price must move to the outside edge of the pitchfork and breakout, otherwise it will likely retest the centerline. A break of the centerline of the pitchfork could lead to a movement toward the lower boundary of the pitchfork array. This movement would put price near the bottom of the range and near critical support.
Bulls appear exhausted propping up these higher prices and a correction could be in order. Targets to the down side would be the 61.8% and 100% retracement levels along with static levels of support along the way.
For the time being, TSLA is in my day-trade watchlist and I am not considering long or short swing positions while it remains in this ranging motion. I'm looking for a breakout to either side of the range for (hopefully) more predictable trending conditions and less whip-sawing in the market. I'm favoring a bearish breakdown based upon my understanding of the technicals but am not bold enough to count a giant like TSLA out of the bullish game quite yet.
The Andrew's Pitchfork is anchored at an abstract point to avoid the gap-up fractals that are seen on the daily chart with traditional candles. The pitchfork validates much more strongly from the position shown and it shows TSLA price action interacting with the centerline.
According to econo-physics principals such as the Von Restorff effect and Hausdorff dimension, TSLA price must move to the outside edge of the pitchfork and breakout, otherwise it will likely retest the centerline. A break of the centerline of the pitchfork could lead to a movement toward the lower boundary of the pitchfork array. This movement would put price near the bottom of the range and near critical support.
Bulls appear exhausted propping up these higher prices and a correction could be in order. Targets to the down side would be the 61.8% and 100% retracement levels along with static levels of support along the way.
For the time being, TSLA is in my day-trade watchlist and I am not considering long or short swing positions while it remains in this ranging motion. I'm looking for a breakout to either side of the range for (hopefully) more predictable trending conditions and less whip-sawing in the market. I'm favoring a bearish breakdown based upon my understanding of the technicals but am not bold enough to count a giant like TSLA out of the bullish game quite yet.