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.
'golden cross' signal. MacD
signal line has crossed near the zero level, indicating a strong buy.
triangle breakout. Same concept as the price, but this signal is much more powerful as it suggests sentiment toward the stock has changed.