As is typical with this symmetrical triangle setup, the stock has broken out to the upside. Tesla is trading in a very defined channel and bulls/bears have been struggling for the last few months along the lower side of the channel's trendline. Today though, the bulls won. Price has been below the red resistance line, which started in late June and has been reinforced 3 separate times, until today. A similar setup is visible in the RSI indicator. We can see within this wedge a consolidation of price and volume until the RSI was 'squeezed' out of the 50 area.
4 buy signals generated here for me.
1. Break in price above the upper red line of previous resistance. Suggests bulls have 'won the fight'.
2. 50% Increase in daily volume compared to the last 20 trading days.
3. MacD 'golden cross' signal. MacD signal line has crossed near the zero level, indicating a strong buy.
4. RSI triangle breakout. Same concept as the price, but this signal is much more powerful as it suggests sentiment toward the stock has changed.
4 buy signals generated here for me.
1. Break in price above the upper red line of previous resistance. Suggests bulls have 'won the fight'.
2. 50% Increase in daily volume compared to the last 20 trading days.
3. MacD 'golden cross' signal. MacD signal line has crossed near the zero level, indicating a strong buy.
4. RSI triangle breakout. Same concept as the price, but this signal is much more powerful as it suggests sentiment toward the stock has changed.