TESLA Stock - Watch For This Next Week

Summary

In this Tesla stock update, the analysis dives into the current market situation, covering both bullish and bearish signals. The stock closed down 1.5%, testing key levels around $328 to $330, and the bulls are still technically holding above critical support. However, there's uncertainty as Tesla teeters between potential bullish continuation and resistance near $333-$335. With mixed signals, including a weak weekly candle and a promising bullish wedge, the analysis suggests waiting for more data before making firm predictions. The key levels to watch are today's low and the $333-$335 range for a clearer direction moving into next week.

Takeaways

• 😀 Tesla's stock closed down 1.5%, with some volatility due to OPEX (Options Expiration), leading to price spikes in the last 10 minutes, especially in Nvidia.
• 😀 The overall sentiment on Tesla's stock is neutral to slightly bullish, as it is still holding key support levels despite the volatility.
• 😀 Tesla closed near 330, just above important support zones in the low 330s, which helped maintain some bullish sentiment, but a stronger close above 333 would have been more confidence-inspiring.
• 😀 The chart shows that Tesla is retesting a pennant breakout and could still hold bullish potential if it breaks back above 333, especially to reclaim control in the short term.
• 😀 MACD and exponential moving averages (EMAs) are still bullish, suggesting potential for upward momentum if the stock can stabilize and hold key levels.
• 😀 The 1-hour chart indicates a possible falling wedge pattern, suggesting a potential breakout if Tesla can surpass the 333-335 range in the short term.
• 😀 The weekly candle shows a weak bullish signal, with a 'shooting star' pattern hinting at a possible false breakout and potential bearish pressure if the trend reverses.
• 😀 On the bearish side, if Tesla drops below the low of today (around 326), it could signal further downside, with potential support at 320 or lower.
• 😀 A critical level to watch for resistance is between 333-335; failure to break above this could indicate bearish sentiment gaining traction.
• 😀 Despite some weaknesses on the weekly chart and mixed signals, Tesla is still seeing significant buying interest, particularly in the 325 strike calls for October 17th, suggesting some bullish bets on the stock's short-term performance.

Q & A

What is the overall sentiment regarding Tesla's stock movement in this video?

The sentiment is slightly bullish but neutral overall. The speaker acknowledges both bullish and bearish factors and expresses hope for a clearer direction in the coming days.

What was the performance of Tesla stock on the day discussed in the video?

Tesla closed down by 1.5% on the day, showing some volatility with spikes in the last 10 minutes of trading, though it did manage a small recovery at the end.

Why is the stock's close at 330.63 significant?

The close at 330.63 is seen as a positive sign because it avoided a potential worse outcome, where the stock could have closed at around 328, which would have been much more concerning.

What technical factors are considered bullish for Tesla in the video?

Bullish factors include the stock still technically retesting a pennant breakout, holding above key support levels, and the MACD and exponential moving averages being bullish. Additionally, the stock is holding in a falling wedge pattern on the 1-hour chart.

What levels are critical to watch in the upcoming days for Tesla stock?

The key levels to watch are 333 and 335 as resistance levels. A break above these levels would strengthen the bullish case. On the downside, the low of the day (around 326) is important—if that level breaks, it could signal further weakness.

What does the speaker think of the weekly candle for Tesla?

The weekly candle is considered to be a 'shooting star' pattern, which suggests a false breakout and could imply potential weakness. This creates some concern, despite the bullish trends in other timeframes.

What was the market behavior towards the end of the trading day?

Towards the end of the session, Tesla's stock saw some volatile movements, with notable spikes, particularly in Nvidia, which may have influenced Tesla's performance as well. This kind of volatility is common during OPEX (options expiration).

How does the speaker interpret the market sentiment moving into the next week?

The speaker is cautious but slightly optimistic. While there's still potential for a bullish setup, the market is showing conflicting signals, and more data from the upcoming days will help clarify the direction.

What is the significance of the 325 strike calls for October 17th?

Someone bought a significant amount of 325 strike calls for October 17th, which the speaker interprets as a bullish sign. It indicates that a market participant may have insider knowledge or a strong belief that Tesla's stock will perform well by that date.

Why does the speaker maintain a slightly bullish view despite the mixed signals?

The speaker remains slightly bullish due to the bullish MACD, the price action within the falling wedge, and the bullish breakout potential. However, the weakness on the weekly chart and lack of a strong close above 333 tempers this optimism.