TESLA Stock - Is This Bearish For TSLA?

Summary

In this Tesla update video, the host discusses Tesla's stock performance, noting a 3.2% drop and a closing price of $223. He highlights bearish signals, including a stochastic bearish crossover and a break below recent trading ranges, suggesting potential downside continuation to the low 200s. The video also touches on low trading volume and technical indicators like the MACD and BX trender, which remain bearish. Despite these concerns, the host emphasizes the importance of capturing the 214-215 level for a bullish outlook and mentions the impact of Nvidia's earnings on the market.

Takeaways

• 📉 Tesla's stock closed the day down about 3.2%, which is considered underperformance compared to the market.
• 📈 The speaker is not a financial adviser and does not provide financial advice; the video is for informational purposes only.
• 🔗 The speaker has a membership section on YouTube for $2.99, offering daily thoughts, updates, technical analysis, and more on Tesla stock.
• 📊 The stochastic indicator has shown a bearish crossover, signaling a potential decrease in bullish momentum for Tesla's stock.
• 🌀 There is concern over the recent trading pattern, with an inside day candle suggesting a continuation of the current trend direction.
• 📉 A break below the recent trading range indicates bearish sentiment and potential weakness in Tesla's stock price.
• 📉 Low trading volume in the current price range could lead to quick price movements, especially if the stock moves to the lower 200s.
• 📊 The speaker anticipates potential support in the very low 200s range, with a worst-case scenario of dropping to the 180s to 170s.
• 📉 The speaker is bearish on Tesla's stock until it can recapture the 214 to 215 price level, which has acted as both support and resistance.
• 📊 The speaker mentions that a retest of the breakdown at the 214 to 215 level is occurring, and a successful retest could lead to further downside movement.
• 💼 Options flow for Tesla shows a significant amount of bearish options, with many puts coming in towards the end of the trading day.

Q & A

What is the main topic of the video script?

The main topic of the video script is a Tesla update, discussing the company's stock performance, market trends, and potential future movements.

What does the speaker mention about Nvidia's role in the stock market?

The speaker refers to Nvidia as being 'the new Apple of the stock market,' suggesting that its earnings reports could significantly influence the overall market direction.

What is the speaker's stance on providing financial advice?

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

What is the speaker's health condition as mentioned in the script?

The speaker mentions being a 'little bit sick,' which is indicated by a 'scuffy' voice.

How did Tesla's stock perform on the day discussed in the script?

Tesla's stock closed the day down about 3.2%, closing at $223, which is considered an underperformance compared to the market.

What technical analysis tool does the speaker emphasize in the script?

The speaker emphasizes the importance of the stochastic indicator in technical analysis, noting its effectiveness in gauging bullish and bearish momentum.

What is the significance of the bearish stochastic crossover mentioned in the script?

The bearish stochastic crossover indicates that the bullish momentum has decreased and the bearish momentum is starting to take over, which is a sign of potential downward price movement.

What does the speaker mean by 'inside day candle' and its implications?

An 'inside day candle' is a candlestick pattern where the price range of one day is completely within the range of the previous day. A break above or below this range typically indicates a continued move in that direction.

What is the speaker's concern regarding Tesla's trading volume?

The speaker is concerned about the low trading volume, which could lead to quick price movements, especially if the stock price moves down to the low 200s.

What is the speaker's view on the potential support level for Tesla's stock?

The speaker expects strong support to kick in at the very low 200s range, and if the price drops below 200, the worst-case scenario would be in the 180s to 170s range.

What is the speaker's current outlook on Tesla's stock based on the recent price action?

The speaker leans bearish on Tesla's stock, expecting a continued move to the downside to the very low 200s range, based on the recent price action and the bearish indicators discussed.

What is the significance of the 214-215 price level mentioned in the script?

The 214-215 price level is significant as it acted as both resistance and support in the past. The speaker suggests that recapturing this level would remove some of the current bearish perspective.

What does the speaker say about the options flow for Tesla?

The speaker mentions that Tesla has about 12 billion in bearish options flow, with a significant number of puts coming in towards the end of the day, but overall, it's not considered extraordinary.