Is TSLA posturing for a bullish run? I’m double-minded.

8 thg 7, 2021

Greetings Investors & Traders,

Although, I remain neutral / bearish on TSLA based on my previous idea (see link below), I do like the recent breakout from the ascending pattern and the pullback to this pattern that occurred today. Nonetheless, I’m double-minded on TSLA. Here is my bearish case:

• Original ABC pattern still plausible on 10D chart.
  
• Descending Triangle pattern isn’t fully complete, which indicates that TSLA could pullback near the bottom of the triangle and even breakout to the downside.
  
• Overall market (SPY, QQQ) and ES1 / NQ1 futures are overbought IMHO and due for a correction/pull-back, which would obviously impact tech stocks (all stocks really) like TSLA.
  
• Potential bearish MACD crossover on 1D chart
  

Here’s my bullish case:

• TSLA broke the Ascending Triangle pattern to the upside, subsequently pulled back and tested support, and bounced to the upside. This is a classic precursor to a bullish run, spastically speaking.
  
• 2H WaveTrend indicates a LONG signal, which I interpret that TSLA may retest the resistance channel around $680-$700 soon. If this occurs, Call options between $650-$700 would appreciate nicely given the right expiration date. I’m also watching the WaveTrend on the 4H charts.
  
• Bullish 20/50 MA crossover on 1D chart.
  
• Bulls control the 1W volume chart with a VMWA of $654. The accumulation/distribution on the weekly is bullish.
  
• 2-day candle indicates a bullish piercing pattern.
  

In my current strategy, I’m minimizing risk/reward by selling call verticals, until I’m confident which direction TSLA is headed. I’m cautiously bullish to a $700 retest.

Happy Trading!

Daily Chart:


Volume Chart: