I’d imagine there’s a high chance you’re not a fan of the guy’s politics.
But make no mistake, when it comes to trading, he’s an absolute legend.
And the one holding that took many investors by surprise is none other than Tesla (TSLA).
Will investors dig their heels in after hearing this news?
Let’s check the chart:
This is a look at the daily chart, focusing on November of last year until now.
After all, this is when the share price was at a “discount” and also the time institutional funds began grabbing shares…
TSLA never traded below $100.00 like many of the TV analysts had forecasted (go figure), but it fell far enough to a low of $101.81.
And in a little over one month, it doubled.
But the focus here is on where it’s headed, which I believe is higher if it can get over a couple of sticking points…
The first? Note the neon green arrow at $209.25.
For the last week, the stock couldn’t close above it… that is, not until yesterday.
And that’s a powerful candlestick when you consider the range it covers.
The second sticking point is the 200ema where I’ve marked the $215.01 level.
Above this and TSLA sees the next Resistance level at $233.42.
Of course, what if this fails?
Frankly, there’s strong support that might go unnoticed here, so I’ve highlighted in yellow where momentum shifted to the upside, turning Resistance into Support.
(Notice how the red line above this box turns to green.)
Mark it at $190.00.
Finally, on the lower chart, I’d keep an eye close on momentum indicators like the TTM Squeeze. The histogram has turned dark green, meaning bullish momentum has slowed down…
“But that doesn’t make sense?”
Indicators lag.
And when indicators show one thing, but price action says another, always stick with the price action.
This material is not an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Any performance results discussed herein represent past performance, not a guarantee of future performance, and are not indicative of any specific investment. Due to the timing of information presented, investment performance may be adjusted after the publication of this report. There can be no assurance that the future performance of any specific investment, investment strategy, or product made reference to directly or indirectly in this communication will be profitable, equal any corresponding indicated historical performance levels or be suitable for your portfolio.
