There are many ways to answer this question, but I will approach it from the side of trading on chart patterns.
You can see the weekly chart of TSLA (Tesla Inc.) in front of you.
If you know anything about chart patterns, you will have spotted the "Symmetric Triangle" by now.
In a downtrend it is a bearish pattern, and in an uptrend it is a bullish signal.
We are in the latter situation (uptrend), therefore a continuation is expected.
However, if we look closely, we can also see a less obvious "Head and Shoulders" pattern, which suggests the opposite direction.
It's not finished yet, but the shoulders are clearly visible.
What I'm trying to point out is that the deeper you look, the more mixed the signals are.
There are traders who look at the chart and make a quick decision, which can end up being a losing trade.
I urge everyone to consider all the information available, take time to analyse the graph and only then make a decision.
Here's how I would interpret the weekly chart.
We are in the middle of the triangle, in addition, the RSI is in the mid-range, so there is plenty of room to move in both directions before it breaks out.
If I would be rich, I would go for TSLA 18. Nov. 22, 280 straddle, but I dont have 5338 USD to spend on a single trade.
The implied volatility is also quite high, making it an expensive staregy.
Instead, I'd rather wait longer and see on which end the exchange rate is sitting.
The more times it approaches one end, the higher the probability of a breakout in that direction.
Support: 264.17, 229.17, 216.51
Resistance: 315.52, 351, 410.39
PS.: The price has a high respect for Pivot points.
Watch out whether it rejects one or breaks through.
You can see the weekly chart of TSLA (Tesla Inc.) in front of you.
If you know anything about chart patterns, you will have spotted the "Symmetric Triangle" by now.
In a downtrend it is a bearish pattern, and in an uptrend it is a bullish signal.
We are in the latter situation (uptrend), therefore a continuation is expected.
However, if we look closely, we can also see a less obvious "Head and Shoulders" pattern, which suggests the opposite direction.
It's not finished yet, but the shoulders are clearly visible.
What I'm trying to point out is that the deeper you look, the more mixed the signals are.
There are traders who look at the chart and make a quick decision, which can end up being a losing trade.
I urge everyone to consider all the information available, take time to analyse the graph and only then make a decision.
Here's how I would interpret the weekly chart.
We are in the middle of the triangle, in addition, the RSI is in the mid-range, so there is plenty of room to move in both directions before it breaks out.
If I would be rich, I would go for TSLA 18. Nov. 22, 280 straddle, but I dont have 5338 USD to spend on a single trade.
The implied volatility is also quite high, making it an expensive staregy.
Instead, I'd rather wait longer and see on which end the exchange rate is sitting.
The more times it approaches one end, the higher the probability of a breakout in that direction.
Support: 264.17, 229.17, 216.51
Resistance: 315.52, 351, 410.39
PS.: The price has a high respect for Pivot points.
Watch out whether it rejects one or breaks through.
