TESLA Stock - Is TSLA Ready To Go Higher Yet?

Summary

In this Tesla update, the analyst breaks down the stock's recent performance, highlighting key support at $345 and resistance around $350–$352. While Tesla shows short-term selling pressure with repeated upper wicks, a weekly close in the mid-$350s could signal a bullish breakout. The video also examines options flow, noting mixed activity with puts increasing near CPI, suggesting cautious sentiment ahead of economic data. Broader market conditions are slightly positive, with potential volatility expected. Overall, the analysis remains cautiously optimistic, emphasizing the importance of support levels and weekly closures for Tesla's potential move higher into the year-end.

Takeaways

• 📈 Tesla closed slightly above $350, but resistance remains in the low to mid $350s, preventing a clear breakout.
• 💡 Key support for Tesla is around $345; losing this level could weaken short-term bullish momentum.
• 🔥 For a confirmed breakout, Tesla needs daily candles closing above $350-$352, ideally mid-$350s, with bottom wicks converting resistance into support.
• 🎯 Minor price targets after breakout are in the $360s, while major targets are around the $380s region.
• ⚠️ Worst-case scenario for Tesla: losing the $325 pivot low would break the rising triangle pattern and signal bearish momentum.
• 📊 Options flow showed mixed activity; more bullish in the morning but significant put activity toward the end, potentially hedging for CPI.
• 🕒 Weekly candle close is crucial; ideally above $350-$355 to maintain overall bullish momentum.
• 📉 The broader market (Nasdaq/Qs) closed slightly in the green after a gap fill, with short-term support at $575-$576 and secondary support at $565-$560.
• ⏳ CPI release is a key potential catalyst for volatility; traders should watch Tesla and the broader market closely around this event.
• 🔄 Short-term consolidation or chop in Tesla stock is possible, potentially lasting into October or early November, even though the long-term outlook remains bullish.
• 📌 Overall sentiment: cautiously bullish, with confirmation needed from price action on key daily and weekly levels.

Q & A

What is the main focus of the video?

The video focuses on providing a Tesla stock update, including technical analysis of daily and weekly charts, market context, and options flow, with a particular emphasis on potential breakout and support/resistance levels.

What disclaimer does the speaker provide at the start?

The speaker clarifies that the content is not financial advice and that they are not a financial adviser.

What are the key Tesla support and resistance levels mentioned?

Key support is around $345, while resistance lies in the $350–$355 range. Minor resistance is near $365, and major resistance is around $380.

What does the speaker indicate about daily candle patterns for Tesla?

Daily candles currently have wicks at the top, indicating selling pressure. A bullish sign would be candles with bottom wicks above resistance levels, converting them into support.

What weekly chart signals does the speaker highlight?

Weekly candles have consistently shown upper wicks, indicating resistance. A strong weekly close above $350–$355 would signal potential breakout momentum. Losing the $325 pivot low would break bullish momentum and the rising triangle pattern.

How might Tesla react if support at $345 fails?

If $345 support fails, Tesla may test the mid-to-high $330s trend line, which could indicate short-term bearish momentum, but not necessarily long-term bearishness unless the $325 pivot is also lost.

What insights are provided regarding Tesla options flow?

Options flow was mixed: bullish in the morning and bearish toward the end of the day, with many weekly puts (expiring 9/12) suggesting potential hedging ahead of CPI.

What upcoming event is highlighted as a market catalyst?

The upcoming U.S. CPI release is highlighted as a major catalyst that could influence both Tesla and the broader market.

What is the speaker's overall short-term versus long-term outlook on Tesla?

Short-term, Tesla faces potential volatility and resistance at $350–$355, with $345 as key support. Long-term, the speaker remains bullish, expecting eventual breakout and higher prices by year-end if key support levels hold.

What broader market conditions are discussed in the video?

The broader market showed mixed performance, with indices like QQQ closing slightly green. Short-term support is at 575–576 EMA, and downside risk could reach 565–560. Overall, despite possible short-term pullbacks, the speaker views end-of-year rally potential as likely.

How does the speaker suggest monitoring Tesla for potential breakout?

Monitoring involves watching daily candles for top-to-bottom wick reversal above $350–$355, maintaining $345 support, and observing weekly candle closes above $350–$355 for confirmation of breakout readiness.

What does the speaker say about potential market volatility into September and October?

The speaker notes that short-term bearish movements or consolidation could persist through September and possibly early November, but ultimately views these as opportunities for a bullish end-of-year trend.