Stock Diary

Tesla on 1 month chart

• 50 EMA is major support
• $272 is major support
• $416 is major resistance
• Interaction with 10 EMA tells if it’s bullish or bearish
• Most recent volume is low with big red candles. Sellers weren’t huge in quantity, but buyers damn sure weren’t stepping in

Look at the major resistance (black line). Tesla hit that and failed to break. Topping wicks suggest that the next time price returns to that line, it might break through. There’s also the advice that resistance needs to be knocked on three times before it officially breaks through. I’ll be looking to buy a major dip.

In 2022, the first time price hit major resistance, it kissed it then broke down. Coming off bullish 2020-2021 momentum, I think major profit taking and fear was overdue. All this suggests that the same may happen after the 2024 run up into the election.

Price then broke down and bounced off the support. It quickly gets shot down, flicks up to retest it, then dips further to the 50 EMA. Price bounces off the 50 to resistance, long slow profit taking, then slowly and steadily pierces pierces through it. In hindsight, it was so obvious that a breakout from the 272 price was going to happen.

Tesla on the 1 week chart

I have two choices: enter at 10 EMA, or enter at major support. Essentially, how low do I think this will go?

It’s already lost that 10 EMA over the 1 week. It looks like it will definitely get to the 50 EMa. The stock may be due for a retest at support after a strong breakthrough. Looking at the MACD, a downtrend might just be beginning. We’re in for a big, like 8-15% correction move, which aligns with major support at $272.

Bias: Downside

Tesla on the 1 day chart

At this timeframe, it’s in a descending channel, 10 is below the 50, strong red last candle.

I conclude that this thing will def be reaching green support, and that’s where I want to get in long.

I’ve set an alert on Tradingview for $272.40. Volume is a sea of red. Respectable sized volume candle with a large red price candle tells me sellers aren’t done yet. The narrowness of that hump tells me they’re still in control and in acceleration.

See ya at green support, aka $272.40.