Good case study here on layering of technicals to enhance the probability of an accurately identified price event (in this case, a reversal). We did indeed break below the 50MA and the steep uptrend TL, but because the drop was so fast, it overshot price volume at 630-650 but didn't quite get to the next uptrend TL (the less steep one), and in fact turned almost on the dot on the 200MA. Before I get too pat-on-the-back with myself, I'll also share that I slept in yesterday and didn't buy into the reversal until the high 600's. On the upside, next up is the downtrend TL formed in the last few weeks, which may also correlate to some degree to 20MA and 50MA, including a 20/50 crossover. Most interestingly, flipping from Daily to a 1M candle (avg daily vol is ~38M), we can see that we're already at that trend line AND there's a bit of price volume just above current price (highlighted in green), both of which will offer some resistance. If we can push through both and break above ~750, there's a decent short term run up to 780+. Otherwise, its probably back down to ~700 in the short term...
Technical analysis on Tesla stock for week ending 02/27/2021. As overall market sells off, Tesla crashes to lows of $619 for the week, before recovering. We’ll wait to see how it plays out next week to confirm whether or not Tesla has put in a bottom. If in fact, the market moves higher, Tesla would need to break above $706, then recapture the 50DMA at $775. A break above that would be very bullish and would test strong resistance at $810-$825. On the bear side, if Tesla fails to break above $706, it could retest support at $835. A continued selloff could push Tesla down to the next level of support at $575. Tesla news this week includes: Tesla has made about $1 billion in profit on its Bitcoin investment Tesla climbs 5% as Cathie Wood and others buy the dip after a multi-day skid Tesla confirms high demand for updated Tesla Model S/X, factory restarts after parts shortage
Like last week I don't see any real support from options. Not enough on the table for THEM to care which way this goes. THEY will just increase option selling in whatever direction the wind blows. MAX PAIN for this next Friday is NOT 760. So don't even bother looking at it. 4000 Calls with a $750 strike out there. That many can sell within hours on a Friday so peanuts. Those 13K Puts with a $600 strike is a scary place for support. I am not saying we are going down or up. We need some news to move this in a real direction. What I am saying is WE get no help in either direction from THEM..... What I do find interesting is the lack of Calls with higher strikes. Usually there are more starting to trickle in. Maybe more people are buying shares than they are Calls. There were 5000 Calls with a strike of $900 Monday and they have only moved up to 6000. We have moved up a few thousand in the 800 strike range but not like the strength of the PUTs. Come on good news!
So based on some technicals, QQQ is at a support level (308) that is supposedly the bottom of a A/B/C correction. The dip the past two days is suppose to be the end of the C wave correction which means there should be a bounce back tomorrow or Friday. And if the bounce back have QQQ close above 319 then it's the end of the correction and QQQ will be on a bullish trend. The video below is very educational so take a watch if you are interested. I follow this guy religiously and he has been a clairvoyant. He tells you what numbers to watch for to confirm one way or another. He doesn't predict the future, but he allows trading algro to confirm the future. This guy haven't been wrong the past 3 months I followed him.
Just want to say thanks for these posts. You've been pretty spot on from everything I've read. Much appreciated!
That may indeed have been the case. The low on 2/23 was $619.00, while the low today was $617.01. Both of those drew extremely heavy trading volume during the minutes surrounding the bottoms. Both occurred during steep opening hour dives followed by quick rebounds. Such a combination of events often signals that a period of significant decline has ended.
10-yr treasury yields spiked up dramatically during Powell's speech. That may have been due to his seemingly only moderate concern regarding those yields, perhaps implying that the Fed won't soon be buying back those bonds. So poof go the Nasdaq and growth stocks like TSLA. Nevertheless, if TSLA rises from here, the notion of a bullish double bottom may still be intact.
Closing at 620 seems to present a potential double bottom... though I’m not holding my breath after this week of margin calls. Had to let go of some trading shares so as to keep my puts active. Covered this weeks calls at 97% of premium. Have not reinitiated for next week yet.
If this price holds up seems like we have multiple technical indicators supporting a reversal - inverted hammer on today's chart; - double bottom yesterday followed by high volume and resistive buying today; - QQQs bouncing off 297 resistance, looking to close above 309, completing its corrective legs; - TSLA hitting 1-year RSI lows (Fremont shutdown peak pandemic excluded); Strong Monday with good volume pushing QQQ past 319 resistance and Tesla back in to mid 600s would be welcomed! If i hadn't been over-leveraged and getting dinged this week, now holding on to 04/16 850p which are tying up my buying power, I would be converting blocks of shares to leaps next week.
Technical analysis and news on Tesla stock for week ending 03/06/2021. Tesla continues to tumble touching $539 at its lows. However it did break back into the long term uptrend channel to close out the week. If it can hold above ~$580 it can very well move up to test resistance at $685. If it can break above that level, the next resistance lies at the 50DMA at around $775. BUT, if Tesla continues to selloff next week, we could see it break below $580 and test the 200DMA at around $474. Tesla news this week includes: India woos Tesla with offer of cheaper production costs than China Tesla’s share of European EV market reduced to 3.5% Elon Musk extremely confident level 5 autonomous FSD will be achieved this year Billionaire investor Ron Baron’s firm sold 1.8 million Tesla shares despite saying price will hit $2,000