TSLA at a Critical Level! Reversal or More Pain Ahead? Feb. 26
Technical Analysis (TA) & Price Action
Tesla (TSLA) has been in a sharp downtrend, breaking key support levels and forming a descending channel on the 1-hour chart. The stock is now testing a crucial demand zone around $300, which aligns with a major PUT wall and strong buyer interest.
Key observations:
* Trend Structure: TSLA is currently in a falling wedge pattern, often a sign of potential reversal.
* Support & Resistance:
* Major Resistance: $320 (previous breakdown level).
* Key Support: $300 (PUT Wall and highest negative NETGEX).
* Breakout Target: $340 if TSLA regains momentum.
* MACD Indicator: Bearish but showing early signs of a possible crossover.
* Stoch RSI: Oversold, suggesting a potential short-term bounce.
Options Flow & GEX Analysis
The GEX (Gamma Exposure) indicator reveals heavy PUT positioning near $300, making it a high-stakes level. A break below could trigger a gamma-driven sell-off, while holding above could fuel a short-covering rally.
* IVR (Implied Volatility Rank): 62, with IVx avg at 71.7%, indicating high volatility.
* Call Side Bias: 31.3% of options flow, meaning some traders are betting on a bounce.
* Key GEX Levels:
* PUT Wall & Key Support: $300 → Breaking below could see more downside toward $290-$280.
* CALL Resistance & Upside Target: $340 → Breaking above this level would confirm a reversal.
Trade Plan & Suggestions
📌 Bullish Reversal Play (If $300 Holds)
* Entry: Above $306 with strong volume.
* Target 1: $320
* Target 2: $340 (CALL Wall breakout target).
* Stop-loss: Below $297
📌 Bearish Breakdown Play (If $300 Fails)
* Entry: Below $297 with volume confirmation.
* Target 1: $290
* Target 2: $280 (Potential next support).
* Stop-loss: Above $310
Final Thoughts
TSLA is at a make-or-break level, with $300 acting as the battleground. If buyers step in, we could see a relief rally toward $320-$340. However, if selling pressure continues, a break below $300 could lead to a further slide toward $280. High volatility means traders should be cautious and wait for confirmation before entering a position.
📢 Risk Management: Adjust stop-loss levels and position size accordingly. This setup has high risk but also high reward potential.
🔹 Disclaimer: This analysis is for educational purposes only and does not constitute financial advice. Always conduct your own research and manage risk accordingly before trading.
Tesla (TSLA) has been in a sharp downtrend, breaking key support levels and forming a descending channel on the 1-hour chart. The stock is now testing a crucial demand zone around $300, which aligns with a major PUT wall and strong buyer interest.
Key observations:
* Trend Structure: TSLA is currently in a falling wedge pattern, often a sign of potential reversal.
* Support & Resistance:
* Major Resistance: $320 (previous breakdown level).
* Key Support: $300 (PUT Wall and highest negative NETGEX).
* Breakout Target: $340 if TSLA regains momentum.
* MACD Indicator: Bearish but showing early signs of a possible crossover.
* Stoch RSI: Oversold, suggesting a potential short-term bounce.
Options Flow & GEX Analysis
The GEX (Gamma Exposure) indicator reveals heavy PUT positioning near $300, making it a high-stakes level. A break below could trigger a gamma-driven sell-off, while holding above could fuel a short-covering rally.
* IVR (Implied Volatility Rank): 62, with IVx avg at 71.7%, indicating high volatility.
* Call Side Bias: 31.3% of options flow, meaning some traders are betting on a bounce.
* Key GEX Levels:
* PUT Wall & Key Support: $300 → Breaking below could see more downside toward $290-$280.
* CALL Resistance & Upside Target: $340 → Breaking above this level would confirm a reversal.
Trade Plan & Suggestions
📌 Bullish Reversal Play (If $300 Holds)
* Entry: Above $306 with strong volume.
* Target 1: $320
* Target 2: $340 (CALL Wall breakout target).
* Stop-loss: Below $297
📌 Bearish Breakdown Play (If $300 Fails)
* Entry: Below $297 with volume confirmation.
* Target 1: $290
* Target 2: $280 (Potential next support).
* Stop-loss: Above $310
Final Thoughts
TSLA is at a make-or-break level, with $300 acting as the battleground. If buyers step in, we could see a relief rally toward $320-$340. However, if selling pressure continues, a break below $300 could lead to a further slide toward $280. High volatility means traders should be cautious and wait for confirmation before entering a position.
📢 Risk Management: Adjust stop-loss levels and position size accordingly. This setup has high risk but also high reward potential.
🔹 Disclaimer: This analysis is for educational purposes only and does not constitute financial advice. Always conduct your own research and manage risk accordingly before trading.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.