TESLA Stock - TSLA Crashes Over 15%..

Summary

In this Tesla stock update, the speaker dives into a major drop in Tesla’s stock price, with a 14% decline to $285. The video covers key technical levels to watch, especially the crucial support at 270-271, which could determine whether the stock rebounds or continues to fall. The speaker explores both bullish and bearish scenarios, analyzing indicators like MACD and RSI. Despite the dramatic drop, the speaker remains cautiously optimistic, noting the potential for a ‘capitulation’ moment and the importance of the next few days and weeks in determining Tesla's future direction.

Takeaways

• 😀 Tesla saw a significant drop of over 14% in a single day, closing at around $285, and another 2% decline in after-hours trading.
• 😀 The stock had been in a rising channel for a while, but several red flags indicated a potential decline, including bearish divergence and losing key moving averages.
• 😀 The $270-$271 level is crucial for Tesla stock. It acted as a resistance point before and is now a key support level.
• 😀 Breaking the $270-$271 level would signal a bearish trend, making the daily chart appear negative and reinforcing the bearish scenario.
• 😀 There's a possibility of a strong recovery if Tesla holds the $270-$271 support, potentially bouncing back to around $330.
• 😀 The MACD has turned bearish, adding to concerns that Tesla could continue its downward movement.
• 😀 RSI has dropped significantly, indicating that the stock could be oversold, further signaling bearish sentiment.
• 😀 The large volume spike during the sell-off could indicate a capitulation candle, suggesting that the worst of the drop might have already occurred.
• 😀 The key challenge for Tesla in the near term is to hold the $270-$271 level, as losing this support could lead to more significant declines.
• 😀 The video emphasizes the importance of watching for a strong bounce from the key support level to avoid the stock turning fully bearish.
• 😀 Despite the recent downturn, there's still some hope for a rebound if the stock holds the support level and recovers the key exponential moving averages.

Q & A

What is the main focus of this video?

The video focuses on analyzing the recent price action of Tesla stock, specifically a significant drop in its price, and providing insights on technical analysis and the current market conditions.

What does the speaker say about the relationship between Elon Musk and Donald Trump?

The speaker mentions that the relationship between Elon Musk and Donald Trump is likely not going to be good moving forward, though they do not go into detail about the specifics.

What are the key technical indicators mentioned in the video?

The speaker highlights the bearish divergence, exponential moving averages (EMA), MACD, and RSI as key technical indicators. They also discuss support levels, particularly the 270-271 range, and how these factors influence the stock's future movements.

How did the Tesla stock perform on the day of the video?

Tesla stock dropped by over 14% on the day, closing at approximately $285, with an additional 2% drop in after-hours trading.

What is the importance of the 270/271 level for Tesla stock?

The 270/271 level is critical because it serves as a major support level. If Tesla stock falls below this level, it could signal a bearish trend and a potential further decline in the stock price.

What does the speaker suggest about the potential for a recovery in Tesla stock?

The speaker hopes for a strong bounce from the 270/271 level to prevent further bearish momentum. A recovery before the exponential moving averages cross bearish is crucial for maintaining a bullish outlook.

What is the bearish scenario for Tesla stock according to the speaker?

In the bearish scenario, the stock may bounce but not significantly, leading to resistance around the 315-320 range. This could develop into a bear flag pattern, and if the stock fails to break higher, it could lead to a larger decline.

What does the speaker say about the possibility of a capitulation event?

The speaker mentions that there is a chance that the large volume spike in Tesla stock is indicative of a capitulation candle, similar to previous instances when the stock made a sharp recovery after a massive drop.

What are the risks if Tesla stock falls below 270/271?

If Tesla stock falls below the 270/271 support level, the speaker views it as very negative, potentially signaling a major bearish trend. This could result in a further decline in the stock price.

How does the speaker view the current sentiment around Tesla stock?

The speaker notes that the sentiment is generally bearish due to the significant drop in price and the external factors affecting the stock, particularly the relationship between Elon Musk and Trump. However, they emphasize that the stock's future depends on whether it can hold key support levels.