TESLA Stock - Watch For This On TSLA

Summary

In this Tesla update, the host breaks down the stock's recent volatility, highlighting both bullish and bearish scenarios. Key technical levels are discussed, including support at $423–$430, resistance near $440–$455, and potential upside targets toward $500. The video reviews chart patterns like rising wedges and shooting star candles, alongside weekly and daily EMAs, MACD, and Fibonacci levels. The host shares personal trading moves, including covered calls, and notes significant long-term put activity in the options market. Overall, the analysis emphasizes careful monitoring of consolidation and breakout signals, helping traders navigate Tesla’s emotionally reactive stock movements.

Takeaways

• 📈 Tesla stock had a volatile day, trading around $434, influenced by positive news about Elon Musk and Trump.
• 💹 The speaker sold covered calls on Tesla shares, expecting resistance near $440–$445 to limit short-term upside.
• 📊 The next significant resistance target is approximately $455, representing a gap fill and potential fair value.
• 📉 Technical indicators suggest Tesla is very extended above the weekly 9 EMA, indicating possible short-term consolidation.
• 🔺 A potential rising wedge pattern exists, but a confirmed breakout has not yet occurred.
• ⭐ A daily shooting star candle has appeared, which may signal a short-term top if confirmed by weakness below $430 and $423.
• 🛡️ Key support levels for Tesla are $430 and $423; falling below these could validate bearish momentum and a false breakout.
• ⏳ Short-term momentum appears exhausted on the 4-hour chart, hinting at a potential cool-off or consolidation phase.
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• 💰 Large LEAP put options for 2027 are being purchased, indicating some investors are hedging against long-term downside risk.
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• 🚀 Bulls need to reclaim $440–$445 and maintain support at $430–$423 to retest all-time highs near $500.
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• ⚠️ Daily candle closes near key levels will provide confirmation of bullish or bearish control in the short term.
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• ⏱️ Medium-term outlook may involve prolonged consolidation, with significant levels and trendlines determining the next major move.

Q & A

What was Tesla's approximate share price at the time of the video?

Tesla was trading around $434 per share, up almost 2% on the day.

What short-term resistance level does the speaker identify for Tesla?

The speaker identifies approximately $440 as a major short-term resistance level, with the next potential resistance near $455.

Why did the speaker sell covered calls on their Tesla shares?

The speaker sold covered calls because they believe the stock may not have enough immediate strength to push much higher, allowing them to collect premiums while holding long-term shares.

What technical pattern does the speaker suggest Tesla may be forming?

Tesla may be forming a rising wedge pattern, with the potential for a false breakout, which could indicate short-term weakness.

What is the significance of the shooting star candle mentioned in the video?

The shooting star candle is a bearish reversal signal, suggesting that the upward trend may cool off or face resistance in the near term.

Which support levels are critical for Tesla to maintain bullish momentum?

The key support levels are around $430 and $423. Falling below these levels could indicate a breakdown and give bears an advantage.

What does the speaker note about Tesla's position relative to the weekly 9 EMA?

Tesla is very extended from the weekly 9 EMA, suggesting that the stock may need to consolidate before continuing its upward move.

What insights does the options market provide according to the speaker?

There is significant activity in long-term put options (LEAPS) for Tesla with strikes ranging from 330 to 440, suggesting some investors are hedging against potential downside over the next few years.

What conditions would validate the bearish potential of the shooting star candle?

A red daily candle closing below $430, especially if it also breaks $423, would provide confirmation of bearish momentum and validate the shooting star pattern.

What would be considered bullish signs for Tesla according to the video?

Closing weekly candles above $440 and turning this level into support would be bullish, potentially leading to a retest of Tesla's all-time highs near $500.

How does the speaker describe Tesla's stock behavior in general?

Tesla is described as a highly volatile and emotional stock, which can be attractive for trading due to its frequent and sometimes dramatic price swings.

What is the medium-term perspective for Tesla if key levels hold?

If Tesla maintains support above critical levels and breaks past $440, the medium-term outlook could remain bullish, although some consolidation may occur first.