TESLA Stock - Is This Concerning On TSLA?

Summary

In this Tesla stock update video, the creator analyzes Tesla's performance and its future potential, examining key technical indicators. They discuss recent price movements, including bearish signals and the potential for a rebound. The video highlights key support and resistance levels, such as the low 340s and the importance of the rising trend line. Despite some red flags, the creator remains cautious yet hopeful for a potential bullish reversal if Tesla can hold certain levels. The video concludes with a look at mixed options flow and the possibility of a cup-and-handle pattern forming for future growth.

Takeaways

• 😀 Tesla stock is currently in a complicated situation, with both bullish and bearish signals emerging.
• 😀 June historically tends to be a strong month for Tesla, but its performance this time is uncertain.
• 😀 The 1-hour chart shows a significant pullback after hitting resistance near the $362-$375 range.
• 😀 A bearish flag pattern formed, leading to a breakdown below key support levels, especially at $350.
• 😀 The daily chart indicates that Tesla is still in an uptrend, but momentum has slowed with a recent close below the 8 EMA.
• 😀 Despite some weakness, the rising trend line is a crucial support level that could hold the bulls in the game.
• 😀 A key resistance area for Tesla is around the $367-$368 range, which is holding back the price.
• 😀 The bearish divergence on the RSI and the loss of momentum are signs of potential further downside risk.
• 😀 The weekly chart shows a bearish reversal candle, hinting at a possible trend reversal if support levels break.
• 😀 If Tesla falls below $340-$350, it could potentially drop to the low $300s, where it could find strong support.
• 😀 A possible 'cup and handle' pattern could form if Tesla drops to the low $300s, offering a potential buying opportunity.

Q & A

What is the main focus of the video?

The main focus of the video is a detailed analysis of Tesla stock, its recent performance, and a forecast for the upcoming week, especially with June approaching, which historically has been a good month for Tesla.

What specific challenges are mentioned for Tesla stock in the short term?

The video mentions several challenges for Tesla stock, including a loss of momentum, the formation of bearish patterns, and a significant failure to turn previous resistance levels into support. There is also concern about a potential loss of momentum as indicated by technical indicators like the RSI and exponential moving averages.

What are the key technical indicators discussed in the video?

The key technical indicators discussed include the 1-hour chart, Fibonacci levels, MACD crossovers, exponential moving averages, and the RSI (Relative Strength Index). These indicators are used to track Tesla's momentum and potential price movements.

How did Tesla stock perform on the 1-hour chart during the video analysis?

The 1-hour chart showed a bearish retest at a key Fibonacci level, followed by a significant sell-off. This was accompanied by a MACD bearish crossover and a large spike in volume, indicating a loss of momentum and suggesting further downside potential.

What was the 375 target for Tesla stock, and why was it significant?

The 375 target was an important resistance level that the analyst had hoped Tesla stock would reach. However, Tesla's price did not fully reach this target, topping out at around 367-368. This level was significant because it marked a previous high before a major sell-off in February.

What role does the 8 exponential moving average play in the analysis?

The 8 exponential moving average (EMA) was crucial in the analysis as it had previously provided consistent support during an uptrend. However, Tesla's recent close below this EMA for the first time raised concerns about a potential loss of momentum.

What is the potential support level mentioned in the video for Tesla stock?

The potential support level mentioned is in the low 340s, which is expected to be a key area where Tesla could find support. If Tesla stock falls below this level, it could signal further downside, potentially moving towards the low 300s.

What are the implications of the weekly chart analysis?

The weekly chart analysis suggests a potential reversal pattern, with the formation of an inverted hammer or doji candle, which could indicate a bearish shift in the trend. If Tesla breaks below key support levels, it could signal a trend reversal and a drop towards the low 300s.

What is the outlook for Tesla stock if it falls to the low 300s?

If Tesla stock falls to the low 300s, this could provide a significant buying opportunity, as the stock would likely align with key support levels where the exponential moving averages are located. This could set the stage for a potential reversal and upward movement in the longer term.

What was the state of the options flow for Tesla stock at the end of the day?

The options flow for Tesla stock was mixed at the end of the day, with both bullish and bearish activity. However, there was nothing particularly noteworthy that stood out as either overwhelmingly bullish or concerning, indicating a wait-and-see approach heading into next week.