Best of the Week
Most Popular
1. Next Financial Crisis Is Already Here! John Lewis 99% Profits CRASH - Retail Sector Collapse - Nadeem_Walayat
2.Why Is Apple Giving This Tiny Stock A $900 Million Opportunity? - James Burgess
3.Gold Price Trend Analysis - - Nadeem_Walayatt
4.The Beginning of the End of the Dollar - Richard_Mills
5.Stock Market Trend Forecast Update - - Nadeem_Walayat
6.Hindenburg Omen & Consumer Confidence: More Signs of Stock Market Trouble in 2019 - Troy_Bombardia
7.Precious Metals Sector: It’s 2013 All Over Again - P_Radomski_CFA
8.Central Banks Have Gone Rogue, Putting Us All at Risk - Ellen_Brown
9.Gold Stocks Forced Capitulation - Zeal_LLC
10.The Post Bubble Market Contraction Thesis Receives Validation - Plunger
Last 7 days
Technical Analysis Points to DOW 30k Next Target - 19th Nov 18
Stock Market Consolidating in a Downtrend  - 19th Nov 18
Next Tory Leader, Prime Minister Forecast and Betting Market Odds - 18th Nov 18
The Fed's Misleading Money Supply Measures - 17th Nov 18
Stock Market Outlook: Why the Economy is Bullish for Stocks Going into 2019 - 17th Nov 18
NO DEAL HARD BrExit Tory Chaos, Theresa May Leadership Challenge - 17th Nov 18
Gold vs Several Key Investments - 17th Nov 18
GDX Gold Mining Stocks Q3 18 Fundamentals - 17th Nov 18
Is Gold Under or Overpriced? - 17th Nov 18
Active Managers are Bearish on Stocks. A Bullish Contrarian Sign - 16th Nov 18
Will The Fed Sacrifice Retirement Portfolio Values For The "Common Good"? - 16th Nov 18
BrExit War - Tory Party About to Replace Theresa May for NO DEAL BrExit - 16th Nov 18
Aspire Global Makes Significant Financial Strides - 16th Nov 18
Gold Oil and Commodities …Back to the Future ? - 16th Nov 18
Will Oil Price Crash Lead to “Contagion” for the U.S. Stock Market? - 15th Nov 18
How NOT to Be Among the MANY Stock Investors Fooled by This Market Myth - 15th Nov 18
Tory BrExit Chaos Cripples UK Economy, Wrecks Housing Market Confidence - 15th Nov 18
Stocks Could End 2018 With A Dramatic Rally - 15th Nov 18
What Could Be the Last Nail in This Stock Bull Markets Coffin - 15th Nov 18
Defensive Stock Sectors Outperforming, Just Like During the Dot-com Bubble - 15th Nov 18
Buying Your First Home? Here’s How to Save Money - 15th Nov 18
US Economy Ten Points or Ten Miles to ‘Bridge Out’? - 14th Nov 18
US Stocks: Whither from Here? - 14th Nov 18
Know exactly when to Enter&Exit trades using this... - 14th Nov 18
Understanding the Benefits of Keeping a Trading Journal - 14th Nov 18
S&P 500 Below 2,800 Again, New Downtrend or Just Correction? - 13th Nov 18
Warning: Precious Metals’ Gold and Silver Prices are about to Collapse! - 13th Nov 18
Why the End of the Longest Crude Oil Bull Market Since 2008? - 13th Nov 18
Stock Market Counter-trend Rally Reaches .618 Retracement - 13th Nov 18
How to Create the Best Website Content and Generate Organic Traffic - 13th Nov 18
Why the Stock Market Will Pullback, Rally, and Roll Into a Bear Market - 13th Nov 18
Stock Markets Around the World are Crashing. What Not to Worry About? - 12th Nov 18
Cyclical Commodities Continue to Weaken, Gold Moves in Relation - 12th Nov 18
Olympus Tough TG-5 Camera Stuck or Dead Pixels, Rubbish Video Auto Focus - 12th Nov 18
5 Things That Precede Gold Price Major Bottoms - 12th Nov 18
Big US Stocks Q3 Fundamentals - 12th Nov 18
How "Free Money" Helped Create Sizzling Housing Market & REIT Gains - 12th Nov 18
One Direction More Likely for Bitcoin Price - 12th Nov 18
The Place of HSE Software in Today's Business - 12th Nov 18

Market Oracle FREE Newsletter

Free Online Trading Session

Tesla Stock Analysis

Companies / Company Chart Analysis Jun 12, 2018 - 06:38 PM GMT

By: Rambus_Chartology

Companies

About three or four weeks ago TSLA was getting a lot of negative feedback from the fundamentals perspective so I showed some charts from the Chartology perspective to see how things would play. Would the fundamentals win out or would the Chartology win.

This first chart is a short term daily look which shows the rectangle that was building out with price action trading at the bottom rail when I posted this chart. I gave two price objectives based on the height of the rectangle. If the rectangle broke to the downside the minimum price objective we could expect would be 246 and if the rectangle was going to be consolidation pattern to the upside the minimum price objective we could expect was at 345 which was hit today.


This is where it starts to get interesting. Below is a two year daily chart which shows the rectangle on the daily chart above is part of a much bigger consolidation pattern a bullish expanding falling wedge. Notice the breakout gap which occurred this morning and the big volume over the last five days that coincided with the breakout from the blue rectangle and now the bullish expanding falling wedge.

Bullish expanding falling wedges are one of the hardest patterns to spot in real time as they make lower lows and lower highs. On the positive side when you do spot one of these patterns they can be very bullish because many investors are stopped out just before the bullish move begins. A backtest to the top rail would come in to play around the 338 area.

This long term monthly chart shows the entire history of TSLA. When I presented the potential bullish case vs the bearish fundamental case, I suggested that the top rail of the four year flat top triangle should hold support as it acted as strong resistance for four years. At the time the price action was trading slightly below the top rail so I labeled the backtest as a strong backtest which happens from time to time.

Below is the weekly chart we were looking at which shows the 2016 bull market uptrend channel. When I posted this chart I expanded the top of the flat top triangle to encompass the two shorter highs which gave me the brown shaded support and resistance zone. Previous resistance once broken to the upside should turn into support which was the case.

The psychology of why this happens is that everyone who bought TSLA below the S&R zone are making money and feel positive about their investments. So when the price action declines down to the S&R zone they are still ahead on their investment and hold on to their position which cause support to hold. On the other hand if the price action started to trade significantly below the S&R zone then the investors will become concerned and will start looking for a place to exit their trade on any strength changing the bullish trend to a bearish one.

You may have noticed I got most of our trades updated on the sidebar this past weekend. While I have TSLA highlighted here I’m going to move the sell/stop up to 312.13 on a close below the 30 week ema. In the Wednesday Report I’m going to post the ten big cap stocks we bought on June 1st which I put into one post. In order to show each individual stock I will have to post each one separately and then move it to the sidebar. Each trade on the sidebar will show the entire history of the stock from the first buy point to the current update.

All the best

Gary (for Rambus Chartology)

http://rambus1.com

FREE TRIAL - http://rambus1.com/?page_id=10

© 2018 Copyright Rambus- All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Rambus Chartology Archive

© 2005-2018 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules