TESLA Stock - Huge Bullish Move! Whats Next??

Summary

The video provides an in-depth technical analysis of Tesla stock, highlighting its recent 7.5% surge and bullish momentum. The presenter explains key indicators, including the 9-day exponential moving average and 4-hour SMI, and illustrates how Tesla typically consolidates before continuing upward. Potential short-term patterns like bull flags and rising triangles are discussed, along with a minor risk scenario if support near $350 fails. Upcoming events, such as triple witching and a possible Fed rate decision, could trigger volatility. Overall, the stock remains strongly bullish, with an upside target of $430–$440 following expected short-term consolidation.

Takeaways

• 🚀 Tesla had a phenomenal two-day rally, closing near $396, just shy of $400.
• 📈 The stock broke out of a congestion period, signaling a strong bullish trend with increased volume.
• 💹 The 9 EMA (exponential moving average) serves as a key support level during bullish trends and consolidation phases.
• ⚡ Historical patterns in Tesla, Nvidia, Google, and Roblox show that after an initial surge, stocks often consolidate near the 9 EMA before continuing higher.
• 📊 The 4-hour SMI is currently elevated, indicating potential short-term cooling or consolidation once it begins to curl sideways.
• 🔮 Near-term targets for Tesla are $430–$440, following a potential minor pullback or consolidation in the $365–$380 range.
• ⚠️ Bearish risks are minimal but would become concerning if Tesla drops below $350 or loses critical trend lines.
• 🌀 Market events next week, including triple witching, potential VIX activity, and rate decisions, may cause volatility but are unlikely to disrupt the bullish trend.
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• 💡 Options flow remains strongly bullish, supporting the likelihood of continuation in Tesla’s upward movement.
• 📈 Short-term consolidation patterns like bull flags, pennants, or rising triangles are expected before the next leg higher.
• 📝 Overall, Tesla is undeniably bullish, but careful monitoring of key support levels and EMA interactions is recommended for potential entries.

Q & A

What was the recent performance of Tesla stock discussed in the video?

Tesla stock had an exceptional two-day performance, rising almost 7.5% and closing just shy of $400 per share, reflecting a strong bullish trend.

What key events next week are expected to influence Tesla's stock volatility?

Next week could be volatile due to triple witching, potential VIXation, and a possible Fed rate cut decision.

How does the presenter describe Tesla's current market pattern?

The presenter describes Tesla as being in a bullish pattern, with strong momentum and a potential for further upward movement after breaking key resistance levels.

What is the significance of the 9-exponential moving average (EMA) according to the video?

The 9-EMA is considered a crucial indicator; stocks often consolidate near it after a strong move before continuing upward, providing a reference for bullish continuation patterns.

What examples did the presenter give to illustrate how stocks behave after aggressive moves?

The presenter used Tesla's post-election move, Roblox, and Nvidia as examples where stocks consolidated near the 9-EMA and then continued rising, demonstrating common bullish continuation behavior.

What short-term target or gap does the presenter expect Tesla to fill?

Tesla could potentially gap up on Monday to fill the gap left at around $405, driven by FOMO from late buyers and liquidity dynamics.

What is the worst-case scenario mentioned for Tesla stock in the near term?

The worst-case near-term scenario would be a retest of the $365–$367 range, though the presenter considers this unlikely barring negative news or catastrophic events.

How does the SMI (Stochastic Momentum Index) relate to Tesla's current price action?

The 4-hour SMI is at elevated levels, indicating overextension, but it has not started curling yet; when it does, it may signal a short-term consolidation before continuation.

What is the potential bearish scenario or 'dead cat' situation discussed?

A bearish scenario involves Tesla forming a large, extended corrective pattern, which could last into next year, but it only becomes concerning if Tesla loses the $350 support level or a key trend line.

What are the longer-term bullish expectations for Tesla mentioned in the video?

Even considering short-term consolidation, the presenter expects Tesla to potentially reach $430–$440, supported by bullish options flow and the overall trend.

What strategy does the presenter suggest for interpreting Tesla's moves and patterns?

The presenter advises watching for bullish continuation patterns such as bull flags, pennants, or rising triangles, especially near the 9-EMA, while also monitoring elevated indicators like the SMI for potential short-term cooling periods.

How does the presenter use historical stock behavior to inform predictions for Tesla?

By reviewing past examples of Tesla, Roblox, Nvidia, and Google, the presenter shows how stocks tend to consolidate near key moving averages before continuing upward, providing a basis for anticipating future price behavior.