TSLA Tesla Inc Heads into Profit-Taking Price Action 1-9-20
TSLA Tesla Inc Stock Chart 1-9-20
Tesla Inc TSLA has traded into my two favorite signals. I call the FUEL and Exhaustion.
The first arrow on the chart shows TSLA breaking out of a trading range on massive volume. The key here is BOTH criteria, not one or the other. Many traders make the mistake of going shallow in their criteria for signals.
The trading range is just as important as the breakout with volume. This patterns ignites a new move. Smart money could no longer buy quietly so they need to step up and take the offer. (See this chart of CRWD for "quiet buying" known as accumulation. Did you get some?)
NOTE: The "reason" doesn't matter. Could be earnings, could be anything, trust the tape.
The second signal is exhaustion. A fast momentum type move, large body candlestick and large volume that occurs at the end of a bullish or bearish run. (some old-school traders call this a "clean-up" print)
Exhaustion represent the last orders that pushed the stock in that direction. Imagine you had a million shares to buy and you have your last 100,000 shares to sell. You basically negotiate a price to sell the entire position.
For today and the next 3-5 days I am looking for a higher open in TSLA and for profit-taking to come in. It's not the time to buy. I'm looking for a decline to the $350 area for a new long.
Have a great day
Pete
Beloved Stock Market Guru breaks Wild New Story
Analyst famous for calling Dot-Com crash, gold boom, and DOW 20,000 now says the gains made with new prediction could trump all.
Tesla’s trek to all-time highs has put prospective buyers in a tough spot.
‘Too late to buy, but too early to sell’: Traders grapple with Tesla’s roaring run
So says Ari Wald, senior technical analyst at Oppenheimer, who argued the electric car maker’s “whippy” shares, which surged nearly 4% on Tuesday to a record $471.63, have rendered the stock all but moot for new buyers eager to get in on the rally.
cnbc.com/tesla-hits-all-time-highs
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It has also remounted the 200-day exponential moving average (EMA) after a notable breakdown, with both elements raising the odds that the stock has finally bottomed out.
