TSLA: Now it is the best time for a reaction!

9 בספט׳ 2020

Hello traders and investors! Let’s study Tesla and try to understand what’s going on here.

First, the hourly chart is still quite bearish, as we see descending tops and bottoms, and no clear reversal sign. As long Tesla continues to trade under the 21 ema and under its previous supports, like this blue line, it will simply continue its downfall.

A retest of the 21 ema is something we can expect, but now Tesla is in a very delicate situation, as we can see on the daily chart:



I’ve been telling you guys for a while that this purple line at $ 359 is quite important. Now is the best time for a reaction, and if Tesla manage to close a candle above this line, the situation will start to look better for it.

Tesla would still have the resistance at the 21 ema, and the trend would still be bearish, but it at least it won’t be a massacre anymore, and it could bring some hope for the bulls.

As long we don’t see a clear reaction, the trend will continue, and Tesla will seek for its next support around the red line at $ 273, while the gap around $ 280 will help to drag the prices down.

Meanwhile, Tesla left this gap (yellow area above the purple line) and it could be filled in the next few days before it starts to fall again, if it is a Common Gap.

And if you made this far, please, support this idea! And I invite you to follow me to keep in touch with my analyses. Every day I’ll be here to share a few ideas with you, and I’m sure you’ll find something interesting.

Let’s watch out for this purple line at $ 359 and see how Tesla will behave next!