TESLA Stock - TSLA Crashes Over 9%.. Whats Next?

Summary

In this Tesla update video, the host analyzes Tesla's stock performance following a not-so-bad earnings report and a disappointing conference call. Despite an 8.2% drop in Tesla's stock price, the discussion centers around whether the stock is officially bearish or if it may still find a bottom. The presenter dives into technical analysis, discussing key levels to watch, including support and resistance zones. The video highlights the current market environment and what might happen in the near future, with a focus on the potential for recovery or further decline, all framed within the context of a sideways pennant pattern in the stock.

Takeaways

• 😀 Tesla stock is currently in a pennant pattern, indicating a period of sideways movement with potential for either a bullish or bearish breakout.
• 😀 Despite a seemingly bad earnings report and an unoptimistic conference call, Tesla's stock remains relatively stable around $300 per share.
• 😀 The main levels to watch for in the pennant pattern are $295 to $300 for support and $340 for resistance.
• 😀 Short-term expectations include a potential bounce in the stock to $310–$315 or sideways action, particularly if the stock holds near $300.
• 😀 The stock's current position near major support levels suggests a possible short-term recovery, but there's uncertainty about a sustained rally.
• 😀 The video emphasizes the importance of watching for confirmation before making any conclusions about the direction of the stock.
• 😀 The stock could continue to chop in the current range for another week or two before breaking out one way or the other.
• 😀 Key concerns for Tesla's stock include breaking the lower low in the pennant pattern, which would signal further bearish movement.
• 😀 The MACD indicator on the weekly chart was briefly bullish but is now showing signs of potential weakness, which could affect the stock’s longer-term outlook.
• 😀 A bearish engulfing weekly candle could be a strong signal of further downside if Tesla closes below $300 or $290 in the coming weeks.
• 😀 While there are multiple arguments for both bullish and bearish scenarios, the stock's movement remains uncertain until a decisive breakout occurs.

Q & A

What is the current status of Tesla stock according to the video?

Tesla's stock is in a state of uncertainty, with the price being affected by a bearish trend, but not yet confirming a full bearish breakout. It remains within a pennant pattern, suggesting sideways movement until a definitive breakout occurs in the near future.

How did the earnings report impact Tesla's stock price?

Initially, the earnings report wasn't too bad, but the conference call followed by a less-than-optimal guidance caused the stock to drop significantly, down about 8.2% in a day.

What is the pennant pattern and why is it important for Tesla stock?

A pennant pattern is a technical chart formation that indicates a period of consolidation before a breakout. For Tesla, this pattern is crucial because it suggests that the stock might continue moving sideways until a breakout occurs, either bullish or bearish, in the coming weeks.

What are the key levels to watch for Tesla stock in the near term?

The key levels to watch are the support level around $295-$300 and the resistance level around $340. These levels will determine the stock's next move, either confirming a breakout or further consolidation.

Why does the speaker believe Tesla could still see a bounce despite recent declines?

The speaker believes that Tesla could see a bounce because the stock is near major support levels ($295-$300) and has been known to recover when it hits these levels. There’s also potential for sideways action before any further price movement.

What is the significance of the 9-exponential moving average (EMA) in Tesla's stock analysis?

The 9-EMA is used as an indicator to gauge short-term trends. The speaker mentions that Tesla has typically recovered above the EMA before a bearish crossover occurs, which is a key signal to watch in determining the stock's future direction.

What are the potential scenarios for Tesla's stock in the upcoming weeks?

In the upcoming weeks, the stock could either experience a bounce back toward $310-$315, or continue sideways until it reaches the apex of the pennant, at which point it could break out in either direction.

What could signal a bearish trend for Tesla stock moving forward?

A break below the pennant pattern, especially if Tesla drops below $290, would signal a stronger bearish trend. This would break the pattern of higher lows and lower highs, indicating further downside potential.

What is the potential upside target if Tesla stock breaks the pennant to the upside?

If Tesla breaks the pennant to the upside, the target price could reach the high $300s, potentially even the $400 range, depending on the strength of the breakout.

What is the importance of the MACD and the weekly candle in Tesla’s stock analysis?

The MACD is a momentum indicator, and the speaker notes that a bullish crossover on the weekly chart would signal that the bulls might be gaining control. Additionally, if the weekly candle closes below $317 and prints a bearish engulfing pattern, it would be a negative sign for Tesla's stock.