TSLA Update – October 25, 2017 …

I last updated TSLA on October 17th (click here) last week.  The firing of the weekly price squeeze looks like it is starting and as I thought, it looks like the squeeze is going to fire to the downside.  That would make it 4 in a row to the downside.  I continue to hold bearish option positions in TSLA.  Here are the charts …

TSLA – Weekly Chart #1

My chart indicators helped me here with TSLA … the yellow candles reminds/warns me about an upcoming expansion phase.  The price momentum/squeeze indicator looks like it is firing to the downside.  The Moving Average Spread indicator looks like it has rolled lower and broken below its signal line which is a bearish signal here as the Squeeze begins to fire.  The trend strength histogram has pulled all of the way back from the extreme warning zone to below the zero line … a big move (WINTER) is coming!!

TSLA – Daily Chart #1

If the weekly chart is about to begin an expansion phase, then you should be able to first see it on the daily chart.  It looks like TSLA is indeed starting an expansion to the downside.

TSLA – Weekly Chart #2

Where can we look to for support?  Earnings (or should I say losses?) are expected after the close on November 1st … I am expecting Elon to try his best to pump his stock’s story because he is going to need cash in a big way and quickly.  Maybe that means that the short-term downside is at around the low $320’s.  The bigger target I think we are going to see before the Q1 earnings report is delivered will be around $230 – $250.

TSLA – Daily Chart #2

Look for price to not head in a straight line, as the TSLA believers (cough cough … Ron Baron) take advantage of the dip in price to continue to buy at lower and lower prices.

Cheers … Leaf_West

Leave a Reply