TESLA Stock - Another HUGE Move! Can TSLA See Higher Still?

Summary

In this Tesla update, the host reviews the stock's recent 3.6% gain, driven by Elon Musk's $1B share purchase, while analyzing key technical levels and patterns. Resistance lies in the $420–440 range, supported by the 9 EMA and potential bull flag setups on shorter timeframes. The daily chart suggests methodical swing trading, with patience required for optimal entry. Market context includes upcoming triple witching, rate cuts, and potential volatility mid-week. While the overall outlook remains bullish, caution is advised if key resistance or trendlines fail. Options flow and market momentum indicate a slightly bullish bias, with short-term fluctuations expected.

Takeaways

• 📈 Tesla closed at $410.26, up 3.62%, partly due to Elon Musk purchasing ~$1B in shares.
• 🛑 Key resistance zone for Tesla is $420–$440, significant due to historical price action and weekly Fibonacci levels.
• 📊 The 9 EMA and 4-hour SMI indicate Tesla may experience a short-term cooldown before further upside.
• 🚀 Ideal bullish setup is a bull flag formation on the 15-minute chart aligning with the daily 9 EMA, potentially leading to a breakout towards $430–$440.
• ⚠️ Bearish risk arises if Tesla fails to break resistance or loses long-term trend lines, which could trigger deeper retracements.
• ⏱️ Daily charts are primary for swing trades, with 4-hour and 15-minute charts used for finer entry points.
• 💹 Broader market remains bullish but slightly extended from the 9 EMA, suggesting possible pullbacks to retest previous all-time highs.
• 🔮 Upcoming market events this week, including triple witching and likely 25bps rate cut, could increase volatility.
• 📈 Options flow on Tesla shows strong bullish activity, but bears are increasingly stepping in during the second half of the day.
• 💼 Long-term position in Tesla maintained; monitoring key support, resistance, and trend lines is crucial for risk management.
• 🧩 Momentum is expected to carry Tesla higher in the short term, with a possible cleaner retest of resistance before continuation.
• 💡 Fibonacci traps could catch both bulls and bears, emphasizing the importance of observing price action closely.

Q & A

What is the main topic of the video?

The video focuses on a Tesla stock update, discussing recent movements in the stock market, key events affecting Tesla, and the potential direction of the stock in the coming days or weeks.

What significant event is mentioned that could affect the market this week?

The video mentions 'triple witching,' which refers to the expiration of stock options, stock index futures, and stock index options. This can lead to increased volatility in the market.

What role does Elon Musk's recent stock purchase play in Tesla's performance?

Elon Musk's purchase of nearly a billion dollars' worth of Tesla shares caused a significant spike in the stock price, but the gains were partially reversed as the stock gave back a portion of the increase.

What is the resistance level for Tesla stock according to the video?

The resistance level for Tesla stock is between $420 and $440. This range is significant because it has previously acted as a pivot point, where the stock experienced a substantial downturn.

What is the 'nine exponential moving average' (9 EMA), and why is it important for Tesla stock analysis?

The 9 EMA is a technical indicator used to track the average price of Tesla stock over the past 9 periods. The video suggests that when the stock is too far above the 9 EMA, it increases the risk of a pullback, and the ideal scenario is for the stock to return closer to the 9 EMA to support further gains.

What pattern does the speaker expect to form for Tesla stock in the near future?

The speaker expects a 'bull flag' pattern to form, which is typically a bullish continuation pattern. This would indicate a potential breakout to the upside, especially if the stock pulls back toward the 9 EMA before continuing higher.

Why is the speaker cautious about Tesla stock's potential pullback?

The speaker is cautious because the stock has become extended from the 9 EMA, which traditionally suggests that a pullback to the 9 EMA is likely. The speaker believes this could create a favorable entry point for further upside movement.

What is the 'bear case' scenario mentioned in the video?

The 'bear case' involves Tesla failing to break above the $420-$440 resistance zone. If this happens and the stock continues to struggle at this level, it could signal weakness and lead to a decline, especially if Tesla loses its long-term upward trend.

How does the speaker view Tesla stock in the long-term?

The speaker remains bullish on Tesla stock in the long-term, holding shares since much lower prices. However, they acknowledge potential risks in the short term, especially if key levels such as the $420-$440 resistance are not breached.

What is the overall sentiment towards the market and Tesla's future?

The overall sentiment is cautiously optimistic. The speaker believes Tesla has strong momentum and could continue higher after a brief consolidation, but they are aware of the risks posed by market volatility, including potential rate cuts and other external factors.