TSLA is testing a hard upside resistance of 180. If we get a breakout below this resistance we could see a downside extension to 120. A bounce from here and a break above 207 we can see an invalidation of the downside extension. A break below 180 will mark the ABC correction finished and a fifth downside wave beginning. Learn to trade Stocks profitably.
How to trade this?
It is a fact that a strong upside resistance for Q1 2024 is 250. If we get a confirmed break here we could see a strong upside continuation and new highs. Near-term, short-trade entries have a higher probability of success but upon a breakout below 180. Long trade entries are possible only on a confirmed price-action break above 180. You can try a short trade here with a stop loss above 230 upon a break below 180. This trade entry has a better Risk to reward. For inquiries about account management please write to [email protected].
The Weekly TSLA chart reveals an addition to the previously mentioned, a retest of a previously broken downside resistance 207 and we have a symmetrical triangle for a downside continuation. A break below 186 and 180 will lead to a downside extension in the last-fifth downside wave.
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As the famous trader says…
“I know where I’m getting out before I get in. Whenever I enter a position, I have a predetermined stop. That is the only way I can sleep. The position size on a trade is determined by the stop, and the stop is determined on a technical basis. ”Bruce Kovner
How to trade this?
It is a fact that a strong upside resistance for Q1 2024 is 250. If we get a confirmed break here we could see a strong upside continuation and new highs. Near-term, short-trade entries have a higher probability of success but upon a breakout below 180. Long trade entries are possible only on a confirmed price-action break above 180. You can try a short trade here with a stop loss above 230 upon a break below 180. This trade entry has a better Risk to reward. For inquiries about account management please write to [email protected].