TSLA Cont. Bull Run after Market Downturn Today? for Dec. 19
Tesla experienced a significant decline during today’s trading session, aligning with broader market weakness. This sharp drop follows a recent bullish rally, prompting key questions regarding whether the stock is consolidating, forming a reversal, or preparing for another leg higher.
Market Structure Analysis: Tesla has been in a strong uptrend for several weeks, recently reaching a high of $488. However, today’s action suggests a possible break in momentum, with the price closing below $450. The intraday sell-off has brought TSLA closer to key support zones, with a significant volume spike signaling heightened activity from institutional traders.
Supply and Demand Zones:
* Supply Zone: $467 - $488 (overhead resistance, marked by recent highs and profit-taking areas).
* Demand Zone: $420 - $429 (critical support from the last consolidation zone in late November).
Order Blocks and Support/Resistance Levels:
* Key Resistance Levels:
* $452: Near-term resistance where sellers became active today.
* $467: Intermediate resistance from prior week’s breakout level.
* Key Support Levels:
* $442: Immediate support tested during the day.
* $429: Lower support, coinciding with today’s intraday low and significant buying interest.
Key Indicators:
* EMA (9/21):
* The 9 EMA has crossed below the 21 EMA on the hourly chart, indicating a bearish shift in momentum.
* MACD:
* Bearish crossover with increasing histogram bars below the zero line.
* This suggests accelerating downside momentum.
* RSI:
* Dropping below 40 on the hourly timeframe, signaling oversold conditions but room for further downside.
Options Flow and Gamma Exposure (GEX):
* Call Walls: $480 and $500 (significant resistance levels based on options activity).
* Put Walls: $430 and $420 (high open interest for puts, likely providing temporary support).
* GEX: Gamma levels indicate that market makers may sell into rallies, adding downward pressure.
Scalping vs. Swing Outlook:
* Scalping:
* Focus on intraday levels such as $442 for potential quick rebounds, targeting $450-$452 resistance. Set a tight stop-loss below $440.
* Swing Trading:
* Watch for a decisive break below $429 for confirmation of a deeper pullback. Alternatively, a reclaim of $452 could trigger a move back toward $467.
Actionable Suggestions:
* Bearish Setup:
* Entry: Below $429
* Target: $420
* Stop-Loss: Above $435
* Bullish Setup:
* Entry: Above $452
* Target: $467
* Stop-Loss: Below $445
Conclusion: Tesla’s recent sell-off has brought the stock into critical support zones, offering opportunities for both bears and bulls. However, caution is warranted given broader market volatility and bearish technical signals. Traders should monitor key levels and volume to confirm the next move.
Disclaimer: This analysis is for educational purposes only and does not constitute financial advice. Always do your own research and trade responsibly.
Market Structure Analysis: Tesla has been in a strong uptrend for several weeks, recently reaching a high of $488. However, today’s action suggests a possible break in momentum, with the price closing below $450. The intraday sell-off has brought TSLA closer to key support zones, with a significant volume spike signaling heightened activity from institutional traders.
Supply and Demand Zones:
* Supply Zone: $467 - $488 (overhead resistance, marked by recent highs and profit-taking areas).
* Demand Zone: $420 - $429 (critical support from the last consolidation zone in late November).
Order Blocks and Support/Resistance Levels:
* Key Resistance Levels:
* $452: Near-term resistance where sellers became active today.
* $467: Intermediate resistance from prior week’s breakout level.
* Key Support Levels:
* $442: Immediate support tested during the day.
* $429: Lower support, coinciding with today’s intraday low and significant buying interest.
Key Indicators:
* EMA (9/21):
* The 9 EMA has crossed below the 21 EMA on the hourly chart, indicating a bearish shift in momentum.
* MACD:
* Bearish crossover with increasing histogram bars below the zero line.
* This suggests accelerating downside momentum.
* RSI:
* Dropping below 40 on the hourly timeframe, signaling oversold conditions but room for further downside.
Options Flow and Gamma Exposure (GEX):
* Call Walls: $480 and $500 (significant resistance levels based on options activity).
* Put Walls: $430 and $420 (high open interest for puts, likely providing temporary support).
* GEX: Gamma levels indicate that market makers may sell into rallies, adding downward pressure.
Scalping vs. Swing Outlook:
* Scalping:
* Focus on intraday levels such as $442 for potential quick rebounds, targeting $450-$452 resistance. Set a tight stop-loss below $440.
* Swing Trading:
* Watch for a decisive break below $429 for confirmation of a deeper pullback. Alternatively, a reclaim of $452 could trigger a move back toward $467.
Actionable Suggestions:
* Bearish Setup:
* Entry: Below $429
* Target: $420
* Stop-Loss: Above $435
* Bullish Setup:
* Entry: Above $452
* Target: $467
* Stop-Loss: Below $445
Conclusion: Tesla’s recent sell-off has brought the stock into critical support zones, offering opportunities for both bears and bulls. However, caution is warranted given broader market volatility and bearish technical signals. Traders should monitor key levels and volume to confirm the next move.
Disclaimer: This analysis is for educational purposes only and does not constitute financial advice. Always do your own research and trade responsibly.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.