TSLA: Repeating the same old story!

Hello traders and investors! Let’s study Tesla today! As it is Friday, let’s do our Multi Time Frame Analysis (MTFA) for a complete study. And if you are new around here, I invite you to follow me to keep in touch with my daily analyses. Every day I’ll share a few thoughts with you, and I’m sure you’ll find something good around.

The trend is very strong in the hourly chart! Yes, we are close to a previous resistance zone (green line), which is a natural target for those who bought around $1400, but since we are in a bull trend, the odds are that TSLA will defeat this point.

Pullbacks are just opportunities to buy, and we can’t discard a possibility of a pullback before it defeats its resistance. If you ask me, a pullback to the blue line at $1562 would be very good and wouldn’t spoil the bull trend at all.

Now, the daily chart:


The daily chart tells us that a pullback is not something we can rely too much right now. Tesla is repeating the same old story again. As it is usual of bull trends, sometimes we see some accumulation periods, when the bulls are just taking a rest, before they resume their march. The black rectangles in this chart shows us these periods.

Tesla just repeated the same movement it did before, and triggered another bullish leg after a gap, which is a runaway gap (yellow rectangles). If the history is repeating itself, Tesla will do a common gap next.

Personally, I was waiting for at least a touch on this purple trendline, but again: We must never underestimate Tesla! The stock is too popular, and it still has room to grow, supported by good fundamentals.

Now, let’s see the weekly chart:


Yes, the weekly chart tells us that it is unlikely we will see the pullback to the purple trendline in the daily chart. We have a Pennant Pattern triggered, which is a good bullish sign.

The volume decreased during the pullback that made the pennant, another indicator that the trend is in fact bullish, and pullbacks are just opportunities to buy. For more details, look for Dow Theory 5th tenet: The Volume Must Confirm the Trend.

Now, this week’s candle has a good volume, and probably the bull trend will continue. There’s no official target for Tesla, but the previous top around $ 1800 is a natural resistance.

But, in my opinion, Tesla will defeat this resistance and do new highs in the next few weeks. Support this idea if you liked it! After all, if you are still here, is because it was helpful!

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