As a TSLA fan, it pains me to take a SHORT bias on this monster stock. However, after examining the 10D chart, I clearly see an ABC pattern with a target around the $465 area. Note the bearish MACD crossover, which is distinct on the 10D chart.
Initially, I was optimistic after spotting the ascending triangle pattern on the daily chart, which is usually a bullish pattern. However, technically, the triangle is a continuation pattern, which I interpret that TSLA may continue the trend previous to this pattern, which is a downward trend.
I’ve added a FIBO retracement series to the chart, since TSLA may climb to the 38% ($675) area in a false breakout, before completing the C wave.
Daily Chart:
Strategy: I may sell a few SHORT CALL verticals around the $650/$700 strike
Happy Trading!
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Very nice breakout from the Ascending Triangle pattern, with a strong move in volume. If TSLA can breakout the larger descending triangle pattern, as shown below, then my bias is bullish.
BTW, I'm LONG the 20 Aug 640C.
Happy Trading
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There was plenty bullish volume on this breakout. Use the Swing pivots as upside targets. TSLA will test R1 again and again, until it breaks above to test R2.
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Second test of trend resistance failed at R1 (~$700), with strong volume. Will TSLA close the $657 gap, and bounce upward, or fall back into previous resistance around $630? Time will tell.
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Waiting to see if TSLA breaks to the upside or downside from this small channel. My current bias: Bearish.