TESLA Stock - Bullish Retracement?

Summary

In this Tesla update, the host breaks down recent stock movements, highlighting a 3.5% drop to $334, right at the 21-day EMA. The daily chart shows a bullish retracement after a short-term pullback, with key support around $330 (0.618 Fibonacci) and potential upside targets of $365–$380. Intraday patterns, like a bear flag, have played out as expected. Weekly and monthly candles show cautionary signs, with a shooting star formation that could signal risk if next week closes weak. Overall, while short-term volatility is expected, Tesla’s bullish trend remains intact if key support levels hold.

Takeaways

• 📉 Tesla stock had a tough day, closing down 3.5% at around $334, hitting the 21-day exponential moving average.
• 📊 The daily chart shows Tesla retracing after a bullish rally, with resistance in the low to mid-350s and the SMI at the top of its range.
• ⚠️ A bearish shooting star candle formed recently, confirmed by a red day following it, signaling a potential short-term pullback.
• 📈 Despite the pullback, the daily chart still shows higher highs and higher lows, suggesting the overall bullish trend may continue.
• 🔹 Key support levels include the 21 EMA and the 0.618 Fibonacci retracement around $330, which could act as strong buying zones.
• 💡 If Tesla breaks below $330, it introduces higher risk but does not necessarily invalidate the bullish potential due to lower Fibonacci support around $320.
• ⏱️ On shorter time frames like the 50-minute chart, patterns like bear flags have played out almost perfectly, indicating predictable short-term moves.
• 📅 Weekly candles show caution: a red week next week could validate a bearish pattern, while a strong close could keep the bullish momentum intact.
• 📈 Monthly candles indicate a slight rejection, with a close below last month's high of $338, which would have been more bullish if surpassed.
• 💭 Overall, the script emphasizes that while short-term pullbacks and risks exist, the medium-term bullish trend remains intact, with careful monitoring of key support and resistance levels.

Q & A

What was Tesla's stock closing price in the latest market session?

Tesla closed at approximately $334 per share, down 3.5% for the day.

What key technical indicator is currently acting as support for Tesla?

The 21 exponential moving average (EMA) around $331-$334 is acting as support.

What does the bearish shooting star candle on the daily chart indicate?

The bearish shooting star candle followed by a red day suggests short-term bearish pressure and potential retracement.

What is the significance of the 618 Fibonacci retracement level mentioned in the video?

The 618 Fibonacci retracement level around $330 acts as a key support point and is considered ideal for a bullish higher-low formation.

What are the potential downside targets if Tesla loses the $330 support level?

If Tesla drops below $330, the next potential downside target is around $320, aligning with the green 'trappy' Fibonacci levels.

What is the short-term bullish scenario for Tesla according to the daily chart?

As long as Tesla holds support around $330, a higher-low formation could lead to breaking mid-350s and eventually targeting around $380.

Why is the weekly chart considered a risk factor despite the bullish daily setup?

The weekly chart shows a shooting star candle; if next week closes weak, it could validate a bearish pattern, increasing risk.

How does the monthly chart impact Tesla's long-term bullish potential?

Tesla closed the month near $334, just below the previous high of $338. A close above $338 would have confirmed a stronger bullish breakout.

What role do green Fibonacci levels play according to the analysis?

Green Fibonacci levels are strong support zones that can trap bears and encourage bullish reversals if the stock tests them.

What should traders be mentally prepared for in the short term?

Traders should be ready for potential dips to $330-$320, which are not impossible, but these levels could also offer buying opportunities.

What pattern did the 50-minute chart reveal and how did it play out?

The 50-minute chart revealed a bear flag formation, which played out nearly perfectly, resulting in a measured move downward.

What is the overall sentiment of the analysis for Tesla moving into September?

Overall, the sentiment remains cautiously bullish, with key support levels holding and potential upside targets at $365-$380 if resistance levels are broken.