TSLA: Beware of these key points! (D&W charts)

7 days agoLooking at TSLA's daily chart, the price has recently climbed back to challenge the major resistance level at $233.09 after bouncing from a rising trendline. This trendline support has played a crucial role in propelling the price higher after a period of consolidation. However, the stock faces a significant challenge at the $233 level, which was previously a strong resistance area that rejected upward movement in the past. The 21-day EMA is trending slightly upward, adding some bullish momentum, but the immediate test will be whether TSLA can break and hold above this $233 level. A successful breakout above this level could open the door for a move toward the next resistance at $245.63 (gap).

On the weekly chart, Tesla recently bounced strongly from the 61.8% Fibonacci retracement level, which acted as a key support during the recent pullback. This bounce is a bullish signal, suggesting that the longer-term uptrend remains intact. A sustained move above the 21-week EMA could further bolster the bullish case, particularly if the stock manages to close above the 38.2% retracement level by the end of the week.

Overall, Tesla’s price action is at a critical juncture, with both the daily and weekly charts showing a need for the stock to overcome key resistance areas to confirm further bullish momentum. A breakout above $233 could set the stage for further gains, but failure to break this level might result in another pullback, possibly toward the rising trendline on the daily chart or lower Fibonacci levels on the weekly chart.

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Remember, real trading is reactive, not predictive, so let's stay focused on the key points described above and only trade when there is confirmation.

“To anticipate the market is to gamble. To be patient and react only when the market gives the signal is to speculate.” — Jesse Lauriston Livermore

All the best,
Nathan.