Hello traders and investors! As today is Friday, let’s do our complete Multi Time Frame Analysis (MTFA) on Tesla! We’ll look at the hourly, daily and weekly chart as usual.
First, Tesla filled the blue gap today, meaning it wasn’t a Breakaway Gap after all, and now it lost all its short-term supports, namely the green/purple lines and the 21 ema (which is now pointing down).
Now, Tesla is just going to seek its supports. It already lost the pink line at $ 411.60 in the post market and it is aiming for the gap at $ 407.32. Now, let’s see the daily chart for more clues:
Tesla did a false breakout from this Triangle chart pattern, as it closed a candlestick outside the pattern, but today it returned to the white area. This is frustrating, and we can’t complain, as the volume was quite low these days, which was a true warning sign.
On the bright side, it is slightly above the 21 ema, but since the candle is quite bearish, I wouldn’t be surprised if Tesla seeks the Triangle’s base next. But right now, it seems the green line in the hourly chart is the border between bull and bear territory.
Let’s see the weekly chart:
Since we just saw a false breakout from a Triangle, it is reasonable to consider the possibility that Tesla could do a pullback in the weekly chart to its previous supports.
The purple line at $ 359 is the first target, and the 21 ema is the second. I find it hard to imagine (at least right now) that Tesla would hit the red line at $ 273, but I’ll leave this point in the chart.
Another real possibility is that Tesla could do a sideways correction and wait for the 21 ema to hit the price. This scenario would make things very complex and boring for Tesla in the mid-term, but we must keep this in mind.
I hope this analysis clarified a few things for you, and please, support it if you liked! Also, follow me to keep in touch with my daily analyses!
Hello @Nathan_Black ! Thank you the analysis! But is it possible that all the shares fell due to Trump news and the price of the TSLA will not start down on Monday, but immediately go up and up and up? Because the news of the week will be somewhat forgotten next week...and Friday was just a stab.
stephaniewright16
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@Pastig, I do believe that it will go up on Monday.
Nathan_Black
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@Pastig, Oh yes, the short-term noise always bring some volatility, but the important is to keep in mind the macro scenario.
Stay safe, Pastig!
TheChiwawaofWallStreet
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I really appreciate your insights, I think that tesla will touch the base of the triangle at 388-391 USD and then try to goes up again to 449$ (which is a clear ressistance right now) What do you think in respect?
We discussed about this scenario in this analysis!
Either way, take care and stay safe.
TheChiwawaofWallStreet
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@Nathan_Black, I know, I just tried to clarify if the prices I did mention were correct according your analysis. Thx , Stay safe!
ZenTradesRW
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Think we retest the 50 day again (~$380) as this was tested twice before and held - could poke through briefly to form a wick to $372. If so, that would potentially be a great swing trade opportunity. Tesla beat consensus deliveries, which means Analysts will start to move their estimates higher along with their price targets into earnings 10/21. Additionally, Trump is pushing the fiscal stimulus package.
Nathan_Black
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@nycdude303, Yeah, this is a real possibility, and the stimulus package is still on the market's radar. Let's see how the charts will react to this.
Thanks, man, and trade well.
Jeff7272
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you all realize it all political news driven at the moment! If Trump is feeling good Monday market will be flat and if Trump declines further start buying PUTS or short! When Trump is released in good healthy condition we will rip to the moon. Through all technicals out the window as for now it's all political news driving this market at this time!
Nathan_Black
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@Jeff7272, Everything is possible with the market, Jeff. Let's just stick with the technique and react properly.