TESLA Stock - TSLA Rockets Over 7%! Whats Next?

Summary

In this Tesla update, the speaker discusses the current state of Tesla stock, providing insights into both bullish and bearish trends. The stock is riding a rising channel with strong support at around $300 per share, but resistance near $375 could pose challenges. Despite some bearish signals, such as a potential divergence on the RSI, the overall momentum remains bullish. The speaker emphasizes the importance of careful entry points, warns of increased risk as the stock moves further from its moving averages, and sets a target of around $375 for the stock. Updates on options flow and potential market movements are also included.

Takeaways

• 😀 Tesla stock is currently bullish, with a 7% increase on the day and overall positive market movement.
• 😀 The speaker offers daily technical analysis and shares updates with their members on market trends and stock performance.
• 😀 Despite some potential bearish signs emerging, the speaker believes the overall market momentum remains bullish.
• 😀 A rising channel is identified as a key bullish indicator, with the $300 per share level serving as a significant support area.
• 😀 The exponential moving averages (EMAs) are flipped bullish, showing a positive trend since a breakout at around the $290 range.
• 😀 The 1-hour time frame confirms bullish momentum as Tesla stock rides the 8 exponential moving average upwards.
• 😀 The main target for Tesla stock is around $375, as this was a key support area in January and may act as resistance now.
• 😀 The speaker warns of potential resistance at around $375, which could trigger a topping action and slow down upward momentum.
• 😀 There is a bearish divergence in the RSI on the daily chart, indicating the possibility of a slowdown or reversal in the near future.
• 😀 The weekly chart suggests that if the stock reaches the $380 range by the end of the week, it will be significantly extended from the EMAs, increasing risk.
• 😀 The momentum remains bullish as long as Tesla stays above the low $350s, but the speaker suggests watching for any signs of topping or resistance near $375.

Q & A

What is the overall sentiment of the market for Tesla stock according to the speaker?

The speaker believes that the market for Tesla stock is overall bullish. Despite some potential bearish signals starting to emerge, the general sentiment is still positive, with momentum pushing the stock higher.

What technical factors support the bullish outlook for Tesla stock?

The bullish outlook is supported by several technical factors, including the stock being within a rising channel, the stock holding above the 8 exponential moving average (EMA), and the EMAs being flipped bullish. Additionally, the stock has been riding the momentum of the breakout from the $290s range.

What is the speaker's primary target for Tesla stock, and why?

The primary target for Tesla stock is around $375, based on several factors. This area was a massive support zone in January, and the speaker expects it to act as resistance now that the stock is moving upward.

What is the significance of the $375 level for Tesla stock?

The $375 level is significant because it was a key support area in January. After the stock broke below this level, a massive sell-off followed. The speaker anticipates this area will now act as resistance as the stock approaches it again.

What potential bearish sign is the speaker noticing on the Tesla stock chart?

The speaker notices a potential bearish divergence on the RSI (Relative Strength Index) on the daily chart. Despite Tesla making a higher high, the RSI has made a lower high, which is a typical sign of a weakening upward momentum and could suggest a potential pullback.

How does the speaker interpret the relationship between support and resistance in the market?

The speaker emphasizes that support levels often turn into resistance once the stock moves past them, and vice versa. In Tesla's case, the $375 region, previously a support zone, is now expected to act as resistance.

How does the speaker approach risk management when analyzing Tesla's stock?

The speaker suggests managing risk by carefully choosing entry points and being cautious of areas like the $375 resistance zone, where the stock could face potential topping action. Risk adjustments should always be made depending on market conditions.

What is the significance of the Bollinger Bands in the analysis of Tesla stock?

The speaker notes that the top of the Bollinger Bands coincides with the $375 resistance zone, further reinforcing the idea that this level could act as a strong resistance point for Tesla stock.

What cautionary advice does the speaker provide about the potential for a pullback in Tesla stock?

The speaker advises that while the overall momentum is bullish, caution should be taken around the $375 resistance level, as there is a possibility for a pullback. The bearish divergence on the RSI suggests that a short-term correction could occur.

What are the key areas the speaker is monitoring for Tesla stock in the short term?

The speaker is closely monitoring Tesla's movement toward the $375 resistance level, along with the behavior of the RSI to see if it creates a higher high or a lower high. Additionally, the speaker is watching for any potential signs of topping action as the stock approaches this resistance zone.