TESLA Stock - Bullish Pattern Forming Here?

Summary

In this Tesla update video, the creator dives into a detailed analysis of Tesla stock, covering recent market movements, patterns, and potential bullish scenarios. The video explores key technical aspects, including the development of a bull flag, potential breakout levels, and price targets. The creator shares insights about market trends, including the significance of volume and the 9 EMA support. They also discuss the implications of weekly candle closures and bullish MACD crossovers. With a focus on short-term volatility and the upcoming OPEX, the video provides valuable insights for Tesla traders and investors.

Takeaways

• 😀 Tesla stock closed down 1.12% at $335, underperforming the market but not uncommon.
• 😀 A potential bull flag formation is developing on the 1-hour chart, suggesting a possible upward move.
• 😀 The expected upside target for Tesla, based on the bull flag pattern, is around $388, which aligns with past resistance levels.
• 😀 The pattern suggests a 14-15% move if the breakout occurs from the current level ($335).
• 😀 A breakout above the $340-$350 range would likely trigger further bullish momentum.
• 😀 The stock is currently consolidating with decreasing volume, a typical sign of a bull flag setup.
• 😀 The importance of the 9 Exponential Moving Average (EMA) was highlighted, as it is acting as support around $330.
• 😀 The SMI (Stochastic Momentum Index) on the 4-hour chart is cooling off, suggesting room for further upward momentum.
• 😀 A key support level exists around the low $330s, with a loss of this level potentially leading to a bearish reversal.
• 😀 Weekly candle closure above $330 (preferably above $335) would be a positive sign, breaking a long-standing resistance zone.
• 😀 Bullish flow on options, including calls for a September 19th expiry, indicates optimism for Tesla’s price movement in the near term.

Q & A

What was the key point discussed about Tesla's stock performance in the video?

The video highlights Tesla's stock performance on a specific day, noting that Tesla was down 1.12% and closed at $335 per share. Despite this, the overall analysis indicates that Tesla may still follow a bullish trend, depending on key technical levels being maintained.

What type of chart pattern is being discussed for Tesla in this video?

The video discusses a 'bull flag' chart pattern forming on Tesla's stock, characterized by a sharp upward move followed by a consolidation phase. The formation appears to be setting up for a potential breakout, indicating possible bullish momentum.

How does the video describe the current volume trend in Tesla's stock?

The video describes a pattern where the volume increased during the breakout, and then decreased as the stock entered a consolidation phase. This is typical for a bull flag formation, where lower volume during consolidation suggests a potential move upward when the breakout happens.

What is the significance of the $388 price target mentioned in the video?

The $388 price target is based on the measurement of the bull flag pattern, which is a rough estimate of the stock’s potential upward movement if the pattern fully plays out. This level corresponds to a prior resistance zone, making it a logical upside target.

What does the speaker suggest would confirm a bullish breakout for Tesla's stock?

The speaker suggests that a breakout above the 340s to low 350s region on the 1-hour chart would be a confirmation of the bullish breakout. This level has been tested before and a successful break would signal further upward movement.

What role does the 9 Exponential Moving Average (EMA) play in the analysis?

The 9 EMA is being used as an indicator of momentum. The stock recently bounced off the 9 EMA, which was seen as a sign of support, suggesting the stock is still in a bullish phase as long as the price holds above this moving average.

What is the analogy used to explain the cooling off period in the market?

The speaker uses a flamethrower analogy to explain how stocks can overheat and need a cooling period. Just like a flamethrower needs to cool down before being used again, the stock price needs to consolidate and cool off before it can resume its upward movement.

What is the potential significance of the weekly candle close mentioned in the video?

The speaker emphasizes that a weekly candle close above $330, ideally around $335 or higher, would be significant because it would mark the first time in several weeks that Tesla closes above this resistance level. This could signal the start of a stronger bullish trend.

What is the relevance of options expiration (OPEX) mentioned in the video?

Options expiration (OPEX) refers to the third Friday of each month, which can lead to increased volatility in the stock market due to options contracts expiring. The speaker notes that this could affect Tesla's price action, potentially causing some erratic movements.

What is the importance of the MACD crossover mentioned in the analysis?

The speaker mentions a potential bullish MACD crossover on the weekly chart, which could indicate that the stock is entering a new bullish phase. A MACD crossover typically signals a shift in momentum, which would be a positive sign for the stock if it continues.