TESLA Stock - Bullish Breakout Finally?

Summary

In this Tesla stock update, the host discusses a potential breakout in Tesla's price, with a focus on technical analysis and key levels to watch. He highlights a breakout from a long-standing trading range, bullish short-term targets (around $350 and $365), and the possibility of reaching $400 or even $480 in the near future. While the stock shows positive signs, including a bullish MACD and breakout patterns, caution is advised due to its extended position above moving averages. The video emphasizes the importance of holding the $330 level to maintain bullish momentum, with potential risks from external factors like CPI data and bearish market flow towards the day's close.

Takeaways

• 😀 Tesla's recent price movement shows a breakout from a two-month consolidation pattern, with the stock closing slightly above key resistance levels around $338.
• 😀 One candle alone does not indicate a trend, but the recent breakout is technically bullish, and there's potential for Tesla's stock to move higher if key support levels are maintained.
• 😀 Short-term targets for Tesla stock are around $350 and $365, with the possibility of reaching $400 in the near future if the bullish trend holds.
• 😀 A potential bull run could take Tesla's stock towards its all-time highs, around $480, if the breakout from the consolidation pattern proves to be legitimate.
• 😀 The MACD and exponential moving averages (EMAs) show bullish signals, but Tesla is currently extended from the EMAs, signaling the need for caution.
• 😀 The stock is flirting with a breakout on the weekly and monthly timeframes, especially after breaking above key monthly highs.
• 😀 The primary support level to watch is around $330. Losing this level could signal a potential reversal to bearish territory.
• 😀 The 335–338 price range represents a former resistance zone that Tesla bulls must hold to prevent a bearish trend from forming.
• 😀 The upcoming CPI and PPI reports create uncertainty, and market volatility could lead to a shift in Tesla's price direction.
• 😀 The end-of-day market flow showed some bearish activity, potentially signaling hedging ahead of the CPI release, though the overall sentiment remained bullish during most of the day.

Q & A

What key point does the speaker emphasize about market trends in Tesla's stock?

The speaker emphasizes that one single candle or day's price action does not determine a trend. A breakout, while important, requires confirmation through consistent price movement over time to solidify the trend.

What significant technical pattern is Tesla breaking out of according to the speaker?

Tesla is breaking out of a large pattern that has been forming since late May to early June, which included lower highs and higher lows, with a key breakout above a recent high of 338.

What are the key short-term and long-term price targets for Tesla according to the speaker?

Short-term targets include $350 and potentially $365, while the long-term target could be as high as the low $400s, with a possibility of testing all-time highs around $480 if the breakout continues.

What cautionary levels does the speaker highlight for potential bearish reversals?

The speaker highlights the importance of holding the 330-338 range. A drop below 330 could signal a major bearish reversal, as it would indicate a loss of support and the potential for a false breakout.

How does the speaker view the volume accompanying Tesla's recent price movements?

The speaker notes that while the volume accompanying Tesla's price movement is not extraordinary, it is decent and shows some confirmation of the breakout, but it's not a major bullish signal on its own.

What external economic factors are influencing Tesla’s stock according to the speaker?

The speaker mentions the potential impact of CPI (Consumer Price Index) and PPI (Producer Price Index) reports as concerns that could introduce volatility or uncertainty into the market.

What pattern in Tesla’s daily candles is the speaker comparing to a past breakout?

The speaker compares the current breakout candle to a similar breakout candle that occurred previously when Tesla was rejected around the 290 region. Both candles have similar body-to-wick ratios and represent breakout attempts.

What is the significance of the 330 level for the bulls in Tesla’s stock?

The 330 level is crucial for the bulls. If Tesla closes below this level, it would suggest the loss of critical support, which would be a bearish signal and could lead to a swift reversal in price.

What role does the speaker see for the Super Trend indicator in confirming momentum?

The speaker views the Super Trend indicator as a secondary tool for confirming momentum. While not a primary indicator, the speaker finds it useful as a ‘cherry on top’ if other signals align and the Super Trend turns green.

What overall outlook does the speaker have on Tesla’s stock if the 330 level holds?

If Tesla holds above the 330 level, the speaker is optimistic about the stock's future, believing that the bulls are in control and that the stock could potentially continue to rise, with a target of $350 and higher in the short term.