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
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
Cheers … Leaf_West