TSLA: Reading the volume might be a life-saver sometimes!
Hello traders and investors! As we expected, Tesla did an upwards breakout from its Triangle pattern! Now it is just heading to our target!
There are several reasons why I though we were about to see an upwards breakout, even considering that Triangles are continuation patterns, and this means that it should’ve done a downwards breakout to the $ 538. If you missed my previous analysis about it, the link to it is below this analysis, if you are curious.
First, let’s see the 1h chart. It did defeat the $ 635, indicating a reversal pattern in the short-term. I told you that while Tesla was trapped inside this congestion, nothing interesting would happen.
The daily chart offer us more clues. One of the things that made me more bullish than bearish was the volume. In the past 15 days, the bullish candlesticks had a higher volume than the bearish days. This is a sign of buy force, which increases the odds of an upwards breakout.
Second, Tesla was already near its support at $ 538 (green line), making the R/R ratio not attractive for the sellers at all. Also, the 21 ema was flat for too long, and although this is just a detail, it is another thing that was indicating that the bears were exhausted.
Now I see some targets. The last one that I see is the gap around $ 733, but we have the $ 714 and the $ 689, which was already hit today! The volume is increasing, and I see no pullback/reversal signs around.
Now, the 21 ema and the $ 635 are supposed to work as supports, if we see a bearish pattern around.
If you liked this analysis, remember to follow me to keep in touch with my updates on TSLA and other stocks!
Thank you very much!
There are several reasons why I though we were about to see an upwards breakout, even considering that Triangles are continuation patterns, and this means that it should’ve done a downwards breakout to the $ 538. If you missed my previous analysis about it, the link to it is below this analysis, if you are curious.
First, let’s see the 1h chart. It did defeat the $ 635, indicating a reversal pattern in the short-term. I told you that while Tesla was trapped inside this congestion, nothing interesting would happen.
The daily chart offer us more clues. One of the things that made me more bullish than bearish was the volume. In the past 15 days, the bullish candlesticks had a higher volume than the bearish days. This is a sign of buy force, which increases the odds of an upwards breakout.
Second, Tesla was already near its support at $ 538 (green line), making the R/R ratio not attractive for the sellers at all. Also, the 21 ema was flat for too long, and although this is just a detail, it is another thing that was indicating that the bears were exhausted.
Now I see some targets. The last one that I see is the gap around $ 733, but we have the $ 714 and the $ 689, which was already hit today! The volume is increasing, and I see no pullback/reversal signs around.
Now, the 21 ema and the $ 635 are supposed to work as supports, if we see a bearish pattern around.
If you liked this analysis, remember to follow me to keep in touch with my updates on TSLA and other stocks!
Thank you very much!
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