🚘 Yes! A Bounce But, How Far Up Can It Go, Tesla?

Yes... A bounce but, will it continue higher?
And if yes, by how much?

The only thing we can do is to read the chart and offer our perspective based on the information coming from it and our experience.

The peak price was hit 4-November 2021 at 414.5.
A low was hit 7-January 2023 at 101.81.

That's a drop of 75.44% (-75.44%).

Let's get started...
Make sure to Boost 🚀👍 to show your support!

The first thing to notice when looking at the TSLA stock in answer to our question is the strong increase in trading volume.

As mid-December came in, volume started to increase strongly.
Putting us in alert, as change signals change.

A low was hit late December then another two lower lows early January but pretty much at the same level... Only few points lower than the December low. This signals that the bears are losing strength.

As the volume continues to increase, the RSI reaches oversold and now TSLA is moving above EMA10 on the daily timeframe...

There were also several gaps left open on the way down and a strong support level turned resistance that needs to be tested/confirmed.

After a strong impulse, it is normal to have a corrective wave.
In this scenario we have a bearish impulsive and the corrective wave move to the upside.

Still, we do not predict nor guess what will happen next...
As traders, we use this information to trade.

Here goes the logic/example:

1) Buy and hold with a bullish bias...
2) If prices move and close daily below 100, we close the buy at a loss (very, very low risk).
3) If there is a bullish follow up, we sell on target (at resistance) on the way up... WIN!

That's it.

Tesla went down strong and now the bias/potential is switching and we are aiming up.

It is hard for me to say how far up it will go, the macro-economic environment might put some pressure on this stock but we can always track it step by step... It is very easy to read the chart.

Namaste.