So it looks like the Bears have won the Tug of War. A Punishing Blow to Tesla Investors just after they felt like they had a little momentum with a breakout move on Friday believing that EM and his Team would Surprise us with the Q1 Financials. My previous chart had us in a Bull Flag as a Long Term Pattern and I'm chalking the last 2 days as an anomalous move by investors looking for good news that didn't arrive. So we're "Back in the Cage" again - the BULL Flag (though not fully inside it yet) that I believe will define our trading range over the next few months until Q2 Financials in July when I suspect we will see some stronger numbers allowing for another breakout that will be stronger than this last one. In the meanwhile this serves as potential guidance to trade the swings as Tesla is so widely known for $8-15 up, retrace and repeat. It's not an easy path but should allow you to still bank some $ along the way.
Comment:
It's April 4th at 7pm. Analyzing the chart I'm seeing that today's candle though straddling the upper channel line of the Bull Flag it did close inside the pattern now confirming as I suspected that we will move completely inside. This week only has 2 more trading days left because of Good Friday so markets will be closed on Friday and with so many people not wanting to hold their positions over a long weekend I expect the selling to continue, albeit on lower volume. Now there was a Bearish cross of the 20 day ma over the 50 but surprisingly the macd and the CMF are having a tough time turning negative although they may soon follow suit they won't have a lot of strength. The selling pressure is drying up and shorts will need to cover but it's a matter as to when this will all play out. Tesla rarely has a string of 5 down days in a row without a bounce so depending on the selling pressure or lack thereof on Thursday (day 4) I may take on a new position late in the day on Thursday or might possibly hold off to see the early morning action on Monday but I suspect a small rally may ensue. Remember we're trying to trade the swings. By the weekend the price may hit $182 or $183 and that could provide a good entry point .