TESLA Stock - Whats Next For TSLA?

Summary

In this Tesla stock update, the creator provides an in-depth analysis of recent price movements, technical indicators, and key levels to watch for the coming weeks. Despite a 4% bounce back, Tesla is facing challenges with resistance at the 200-day moving average, and momentum indicators like the MACD suggest a bearish trend. The analysis also covers potential price targets, both bullish and bearish, with particular emphasis on the critical 270 support level. The creator advises caution and emphasizes watching key levels to determine Tesla's next major move.

Takeaways

• 😀 Tesla stock bounced back 4%, closing at approximately 295, after a substantial fall the previous day.
• 😀 The 200-day moving average is acting as resistance, with Tesla needing to break above 305-309 to show further bullish potential.
• 😀 A bounce is expected when a stock falls aggressively, but it may turn into a 'dead cat bounce,' where it may not hold for long.
• 😀 Tesla's short-term price action could follow an 'inside day' pattern, with potential breakouts above 306 or below 291 signaling continuation in the respective direction.
• 😀 If Tesla's price breaks above 315-320, this range will act as resistance due to the 8 EMA, 21 EMA, and trendline being aligned in that area.
• 😀 If Tesla falls below 270, it could trigger a further decline toward the low 200s, with 270 being a key level of support.
• 😀 A close below 270 would be considered very bearish, potentially altering the medium-term outlook to a negative stance.
• 😀 Despite the current bearish sentiment, holding above 270 could lead to a more bullish outlook, with the possibility of reaching 400+ by the end of the year.
• 😀 The MACD is showing a lower low, signaling weakening bullish momentum, while the stochastic shows declining short-term momentum.
• 😀 Tesla's exponential moving averages (EMAs) are crucial to watch, as a crossover of the 8 EMA above the 21 EMA and both above the 50 EMA would signal bullish momentum returning.

Q & A

What is the main focus of the video?

The video primarily focuses on analyzing Tesla's stock performance, including its recent movements, technical analysis, and potential price targets for the near and medium term.

What is the significance of the 200-day moving average in Tesla's stock analysis?

The 200-day moving average is a key indicator in technical analysis, used to track long-term trends. The script highlights that Tesla's stock recently dropped below this average, and it is now acting as resistance, meaning the stock struggles to stay above this level.

What does the speaker mean by a 'dead cat bounce'?

A 'dead cat bounce' refers to a short-term rebound in the stock price after a significant decline. It is generally seen as a temporary reversal before the downtrend continues.

What are the key price levels to watch for Tesla stock in the coming days?

The key levels to watch are 305 and 309. A break above these could signal a potential upward move to the range of 315 to 320, while a drop below 291 could lead to a further decline towards the low 270s.

How does the speaker view the importance of the 270 price level for Tesla?

The 270 level is considered crucial for Tesla’s stock. If the price drops below this level and closes below it, the speaker sees it as a bearish signal, indicating the potential for a much lower move, possibly down to the 170s or 180s.

What are the exponential moving averages (EMAs) and why are they important?

Exponential moving averages (EMAs) are used to measure the average price of a stock over a specific period, with more weight given to recent prices. The speaker points out that Tesla's stock is at risk of a bearish crossover between the 8 and 21 EMAs, which could signal weakening momentum.

What is the potential outcome if Tesla’s stock clears the resistance levels at 315-320?

If Tesla's stock clears the resistance at 315-320, it would likely lead to further upward movement, with a possible price target of 330. The stock would also be back above the important EMAs, signaling a potential reversal in momentum.

What is the role of the MACD and stochastic indicators in this analysis?

The MACD (Moving Average Convergence Divergence) is showing a lower low, signaling bearish momentum, even on a relatively positive day. The stochastic indicator shows a significant drop in momentum, indicating a lack of short-term bullish strength.

Why is the 270 price level particularly significant for Tesla’s medium-term outlook?

If Tesla falls below the 270 level, it would signal a breakdown in the stock's structure, turning previous support into resistance and opening the door for a more substantial decline. This is seen as a critical pivot point in the stock’s medium-term outlook.

What is the speaker's overall outlook on Tesla’s stock by the end of the year?

If Tesla can hold above the 270 level and clear the 315-320 resistance, the speaker sees potential for significant bullish movement, possibly reaching 400+ by the end of the year.