TSLA: A new record high! But what if Tesla drops?

2021年1月8日

Hello traders and investors! Let’s see how Tesla is doing today!

First, the stock is in an extremely strong bull trend, and there is not a single one pullback or reversal sign (at least not yet). The last candlestick was a Hanging Man pattern, but it wasn’t triggered yet.

We have some gaps around too, and they would work as targets if Tesla starts a pullback. If Tesla fills the last gap next week, we’ll have an Exhaustion Gap that could lead Tesla to lower levels.

In the short-term, Tesla has support at the $ 774 and at the $ 718, we also have a purple trendline that could hold the price. For now, we must watch out for this Hanging Man pattern.

Let’s see the daily chart now:



The trend is clearly bullish, and so far, there’s nothing telling me that Tesla will drop, as crazy as this sounds, and as stretched the chart is. If Tesla triggers the pattern seen in the hourly chart it’ll be a start, sure, but this will take some time to reflect in the daily chart.

What I find curious is the volume lower than the average during this bullish leg. This reinforces the possibility that Tesla may do a correction in the daily chart if it starts showing some weakness in smaller time frames. The big question is, how far could Tesla drop?

Historically speaking, Tesla respects the 21 ema quite well when it is trending. Right now, the 21 ema is near the previous top at the $ 695, but since it is a dynamic indicator, it’ll go up in the next few days.

But remember, so far, Tesla is in a strong bull trend, and no pullback or reversal was triggered yet. And if this analysis helped you, please, support it! And follow me to keep in touch with my daily studies.

Thank you very much.