TESLA Stock - More Downside For TSLA?

Summary

In this Tesla stock update, the presenter analyzes recent trends and potential future movements for the stock. He discusses the loss of key support levels, mixed momentum signals, and bearish patterns in the charts. Despite some signs of potential bullish recovery, the overall structure suggests a bearish outlook. The presenter highlights important technical levels, including the $300 support zone, and anticipates that Tesla’s next moves could be crucial, especially with the upcoming delivery numbers. He remains cautious, leaning toward a bearish stance while monitoring for any significant shifts in the stock's behavior.

Takeaways

• 😀 Tesla stock recently closed at $325.72, down nearly 6% on the day.
• 😀 The key resistance zone for Tesla stock is between $333 and $335, which has been lost recently, triggering bearish sentiment.
• 😀 The stock's movement suggests the potential for a bearish trend, but there’s still a chance for the bulls to regain control if Tesla can close above $333.
• 😀 The MACD and stochastic indicators are showing bearish momentum, suggesting that the trend has shifted away from bullish territory.
• 😀 Despite bearish indicators, the exponential moving averages (EMAs) are still positive, keeping the possibility of a bullish move alive.
• 😀 A crucial support level for Tesla stock is near the $300 mark, which aligns with the bottom of the rising daily channel.
• 😀 The potential bearish scenario includes a drop to around $300, especially if the current bearish flag pattern plays out.
• 😀 Mixed signals in the options flow indicate a somewhat bearish outlook, but with some bullish activity, the market sentiment is not overwhelmingly negative.
• 😀 The upcoming delivery numbers on July 2nd will be critical in determining the next direction for Tesla's stock price.
• 😀 Simple chart patterns, such as trendlines and candlestick formations, provide the clearest insight into Tesla's future movements, with or without technical indicators.
• 😀 The structure of Tesla's stock chart remains bearish, with a break of the previous upward trendline, confirming the current downtrend.

Q & A

What is the main focus of this Tesla update video?

The main focus of the video is to analyze Tesla's stock, reviewing its recent performance, discussing potential future movements, and sharing technical analysis insights.

What does the host offer in terms of membership?

The host offers a YouTube membership for just three dollars a month, providing access to Tesla stock analysis, options flow, technical analysis updates, and charts during trading hours. Additional tiers include coverage of Nvidia stocks and other non-Tesla stocks.

What was the closing price of Tesla stock at the time of this video?

Tesla stock closed at $325.72, down approximately 6% on the day.

What is the significance of the 333 to 335 price region for Tesla stock?

The 333 to 335 region is a crucial price zone. Losing this level is considered a bearish sign, as it indicates resistance and potential for a further decline. The host emphasized that the bulls needed to maintain above this level to avoid a bearish outlook.

What pattern did the host mention that could suggest a bearish trend for Tesla?

The host discussed a bearish pattern, specifically a 'dead cat bounce,' where the stock rallies temporarily before facing resistance, leading to a potential further decline. They also mentioned the loss of momentum indicators like MACD and stochastic as bearish signs.

What indicators suggest that Tesla's stock momentum might still favor the bulls?

Despite bearish signals, the exponential moving averages (EMAs) are still bullish, with the 21 and 8 EMAs above the 50 EMA. The host also noted that a green signal from an additional indicator still suggests some bullish momentum.

How does the host view the importance of market structure in making trading decisions?

The host emphasizes the significance of market structure, suggesting that despite conflicting indicators, simple chart patterns, trendlines, and candle patterns are the most reliable tools for determining the stock's movement. They advocate for removing complex indicators in favor of structure and basic technical analysis.

What key support level should investors watch for in Tesla stock?

Investors should closely monitor the $300 level, which is seen as crucial support. If Tesla's stock breaks below this level, it could signal further declines, as this represents the bottom of the rising daily channel.

What event does the host consider important for Tesla in the upcoming week?

The host highlights the Tesla delivery numbers report on July 2nd as an important event. This could significantly impact the stock's direction, especially given the current market conditions.

What does the host expect from the potential bear flag pattern?

The host expects the bear flag pattern to play out, predicting a move down to approximately $300 per share. This would align with the bottom of the rising daily channel, which could serve as key support for Tesla.