TESLA Stock - Huge Move Coming On TSLA

Summary

In this Tesla stock update, the speaker analyzes Tesla's current market performance, offering insights into technical indicators, stock movements, and potential future trends. Despite recent fluctuations, Tesla's stock remains within a rising channel, with the speaker predicting a bullish outlook unless the stock drops significantly. The speaker also discusses the broader market, including SPY and VIX levels, forecasting potential choppiness but ultimately expecting a bullish trend. Key targets include $375-$380 for Tesla, and the video emphasizes patience, monitoring key levels, and preparing for possible market corrections and opportunities.

Takeaways

• 😀 Tesla stock closed the day slightly down (0.5%) at $339, showing outperformance compared to the broader market (QQQ).
• 😀 The stock is holding well within a rising channel, supported by the 8 exponential moving average (EMA), indicating a bullish outlook.
• 😀 Despite some market volatility, Tesla stock has been consolidating with decreasing volume, which is generally a positive sign for potential future gains.
• 😀 The immediate support level for Tesla is around the $225–230 range, which is critical for maintaining the bullish outlook. A drop below this could signal a short-term bearish trend.
• 😀 The target for Tesla's stock price in the coming weeks is around $375, with a potential pullback once this level is reached, followed by a deeper correction back to the $300 level.
• 😀 The weekly chart looks slightly overextended, and if Tesla hits the $375 target, it might trigger a stronger sell-off and a deeper correction into the exponential moving averages.
• 😀 The 1-hour chart reveals similarities to early May's price action, with Tesla showing signs of a potential bounce around the $333 region, possibly leading to a further rally.
• 😀 The MACD on the 1-hour chart is showing a bearish crossover, indicating short-term caution, but the potential for a bullish crossover in the coming days suggests an upward move could follow.
• 😀 There's a risk in the current momentum play, as Tesla's price action is not following a reversal pattern like in earlier price movements, meaning it might be more susceptible to higher risk.
• 😀 The broader market (SPY) is showing strength, with a potential bottoming out around 565–575, and could set the stage for a bullish continuation, benefiting Tesla as well.

Q & A

What is the main focus of the video?

The video provides an in-depth analysis of Tesla's stock performance, discusses market trends, and forecasts potential movements based on technical indicators. It also touches on the broader market, including SPY and VIX.

How did Tesla perform on the day of the video recording?

Tesla closed the day fairly flat, down by about 0.5%, ending just above $339 per share. Despite this, it outperformed the broader market, as the QQQ index showed a decline.

What does the presenter expect for Tesla's future movement?

The presenter expects Tesla to maintain its position within a rising channel. As long as it holds the 8 exponential moving average and the key price levels, Tesla is expected to stay bullish. A drop below certain levels could indicate a short-term bearish trend.

What are the key price levels to watch for Tesla in the coming days?

The presenter suggests that Tesla should ideally hold the 225-230 range, and that a drop below these levels could signal a potential correction.

What is the significance of the $375 target for Tesla?

The $375 target represents a resistance level that the presenter believes Tesla could reach in the near future, especially as the stock rises within the channel. This level is key for the next potential sell-off or deeper correction.

What potential risks does the presenter identify in the stock's movement?

One risk mentioned is that the rising channel could fail, leading to a deeper correction. The presenter also cautions that while the stock appears bullish, momentum plays carry more risk than reversals, which he personally prefers.

How does the presenter view the technical analysis for Tesla?

The presenter is generally bullish on Tesla, noting that the technical indicators, such as the MACD and RSI, are still favorable, although there is some concern about the stock being overextended on the weekly chart.

How does the VIX impact the market outlook?

The VIX closing above 20 suggests that volatility is expected, which could lead to choppy market conditions. This may result in some unpredictable movements in the short term.

What is the presenter’s long-term outlook for Tesla?

The long-term outlook is bullish as long as Tesla remains within the rising channel. The presenter expects the stock to potentially correct in the short term but ultimately sees the stock heading higher in the longer run.

What advice does the presenter give to viewers regarding the stock?

The presenter advises viewers to watch for key levels and trends, especially the $375 resistance, and to be cautious about a potential sell-off if the stock reaches overextended levels. However, any correction should be viewed as an opportunity to reload positions.