TESLA Stock - Can TSLA See 330s Again?

Summary

In this Tesla update video, the presenter analyzes Tesla's stock performance, offering insights into the broader market, technical analysis, and potential movements. They discuss the stock's current trends, key support and resistance levels, and the impact of earnings reports from companies like Microsoft, Apple, and Meta. The focus is on short-term patterns, such as bull flags and Fibonacci retracements, while also acknowledging the larger market context. The presenter suggests that Tesla’s price is likely to break out soon, predicting potential movements to either the upside or downside, with significant pressure building for a major move.

Takeaways

• 😀 Tesla stock is currently facing market volatility, and the focus is on short-term technical analysis.
• 😀 A major key level for Tesla stock is around $312, with a bounce from the 618 Fibonacci level providing a potential short-term support.
• 😀 Short-term targets for Tesla are based on a bull flag setup, with potential movement toward the 330s if the current upward momentum continues.
• 😀 The current market is under pressure from earnings reports, with major companies like Microsoft and Amazon influencing market behavior.
• 😀 Tesla’s stock has been underperforming compared to the broader market, with a 65% drop on the day.
• 😀 A critical zone for Tesla is the pennant formation on the daily chart, where a breakout above $340 could lead to a retest of $400, while a drop below $300 might send it to around $240.
• 😀 The 1-hour time frame is important for immediate trading decisions, as it shows significant action in the short-term trend.
• 😀 The MACD on shorter time frames (1-hour and 4-hour) shows bullish signs with green indicators, suggesting that bulls have the upper hand for now.
• 😀 Tesla stock is experiencing compression in the monthly candles, with both May and June being contained inside previous months, signaling potential for a strong price movement soon.
• 😀 A key takeaway is the emphasis on Tesla’s tight range and potential breakout, with $240 to $400 being the critical levels to monitor for an explosive move.

Q & A

What is the primary focus of the video?

The video focuses on analyzing Tesla's stock performance, discussing market movements, and providing technical analysis to forecast future trends in Tesla's stock.

What major stock event is being discussed in the video?

The video discusses Tesla's stock performance, particularly its decline and recovery during FOMC (Federal Open Market Committee) events, and its current position within a bullish flag pattern.

What technical analysis tools are mentioned in the video?

The video mentions the use of Fibonacci retracement levels, bull flags, descending channels, SMI (Stochastic Momentum Index), and MACD (Moving Average Convergence Divergence) for technical analysis.

What is the significance of the Fibonacci retracement mentioned in the script?

The Fibonacci retracement at around $312 per share is significant because it represents a potential support level where Tesla's stock price bounced after a sharp decline.

What is the 'bull flag' pattern, and how is it relevant to Tesla's stock?

A 'bull flag' is a continuation pattern where the price forms a rectangular consolidation after a sharp upward movement. It is relevant because the video suggests that Tesla's stock is currently in this pattern and may break out to the upside if the stock price maintains support at the lower levels.

What is the significance of the $340 and $300 price levels mentioned in the script?

The $340 level is a resistance point, and if Tesla's stock breaks above it, the video predicts a potential move toward $400. On the other hand, if the stock drops below $300, a retest of $240 is expected.

How does the SMI indicator help in predicting stock movements?

The SMI helps identify overbought or oversold conditions by measuring the momentum of price movements. In the video, the SMI is described as being neutral on the 4-hour chart, indicating a lack of clear direction at that moment.

What is the outlook for Tesla's stock in the short term according to the video?

In the short term, the outlook is cautiously optimistic, with a potential continuation to the upside if Tesla breaks above $320, with a target around the 330s. However, if Tesla loses its support at $312, the outlook could turn bearish.

What is the significance of the MACD indicator in the video?

The MACD indicator is used to measure the momentum and trend direction. The video mentions that both the short-term and longer-term MACD are holding green, indicating bullish momentum in Tesla’s stock.

What does the video suggest about the monthly chart for Tesla?

The monthly chart shows that Tesla's stock is in a period of consolidation, with two inside candles (May and June) indicating a compression in price. This suggests that a significant move, either up or down, is likely to occur soon.