TESLA Stock - 6% Bullish Breakout!

Summary

In this Tesla update, the host breaks down the recent bullish movement in Tesla stock, analyzing key support and resistance levels, potential retracement scenarios, and likely price targets. He explains two main bullish paths—either a small pullback before continuing higher or minimal dips leading to rapid gains—and highlights the strong options flow signaling bullish sentiment. Weekly and monthly charts reinforce the upward trend, while he also touches on broader market conditions, noting overall bullishness with minor cautionary signals. The video is aimed at helping viewers understand short-term and long-term potential, emphasizing risk management and strategic entry points.

Takeaways

• 📈 Tesla stock is showing strong bullish momentum and entering a more interesting price zone.
• 💹 Key support level is around $345, which has held and kept the bullish scenario alive.
• 🚀 Immediate resistance is in the mid to high $360s, with short-term targets already being met.
• ⚡ Two main bullish scenarios: a direct upward move with minimal pullback (25% probability) or a healthy retrace to high $350s–$360 followed by continuation higher (50% probability).
• 💰 The analyst is looking to add positions on pullbacks or when Tesla meets the 9 EMA.
• ⚠️ A red flag would be Tesla falling below $350 and turning it into resistance, potentially forming a bearish head and shoulders pattern.
• 📊 Weekly and monthly charts, along with momentum indicators (MACD, stochastic, EMAs, super trend), all suggest bullish conditions.
• 📈 Options flow is overwhelmingly bullish with 61 million calls versus 10 million puts, indicating strong bullish sentiment.
• 🌐 Broader market (e.g., QQQ) remains bullish, holding key levels at 575 and retesting fresh all-time highs at 580–582.
• ⚠️ Cautionary signals include emerging bearish divergences in MACD and RSI, along with potential market volatility due to upcoming rate cut decisions.
• 🎯 Short-term Tesla target is around the $380s, with potential for higher if resistance turns into support.

Q & A

What is the overall trend of Tesla stock according to the video?

Tesla stock is in a bullish trend, showing higher highs and higher lows, with positive momentum indicators such as EMA, MACD, Stochastic, and SuperTrend.

What recent technical pattern did Tesla stock form?

Tesla recently formed a bull flag pattern around the $345 level, which has now broken higher into the $365–$368 range.

What are the key bullish scenarios for Tesla mentioned in the video?

There are two main bullish scenarios: (1) an ultra-bullish case with minimal pullbacks leading to a rapid move higher, around a 25% probability, and (2) a healthy retrace where the stock pulls back to $355–$360 before continuing higher.

What is the main target price for Tesla stock according to the video?

The main target price is approximately $380, which aligns with a fair value gap and previous resistance levels.

What is considered a red flag for Tesla's bullish trend?

If Tesla loses the $350 zone and turns it back into resistance, it could form a bearish head and shoulders pattern, signaling a significant bearish risk.

How is options flow influencing Tesla's outlook?

Options flow is strongly bullish, with 61 million in call activity versus only 10 million in bearish flow, indicating strong buying interest among traders.

What strategy does the video suggest for trading Tesla on pullbacks?

The strategy is to add to positions on meaningful pullbacks, particularly in the $355–$360 range, to capitalize on continued bullish momentum.

What is the broader market trend according to the video?

The broader market, specifically QQQ, is also bullish, holding key levels at $575 and retesting all-time highs around $580–$582, though some bearish divergences exist in momentum indicators.

What risks are highlighted for the broader market?

Emerging bearish divergences in MACD and RSI, along with upcoming rate cut decisions, could introduce volatility and pose risks despite the overall bullish trend.

Which key levels should traders monitor for Tesla and the broader market?

For Tesla, $345–$350 is key support and $365–$368 immediate resistance, with $380 as the main target. For the broader market, $575 is critical support, with all-time highs around $580–$582 serving as key resistance.

How does the video describe the probability of Tesla moving higher versus a potential pullback?

The video suggests a roughly 25% chance of an ultra-bullish rapid move higher with minimal pullbacks, while a healthy retrace to $355–$360 before continuing higher is considered more likely or 'healthier.'

What indicators confirm Tesla's bullish momentum?

All key momentum indicators including EMA, MACD, Stochastic, and SuperTrend are showing bullish signals, reinforcing the upward trend.