The monthly chart shows that TSLA is reaching a critical resistance of 275. This is a confluence of upside resistance after six months. A break above this level exposes the 300 again and could indicate that we will have an upside reversal continuation but only if we get a confirmed break above 300, which would present a bull flag breakout…
The Weekly NASDAQ chart reveals a possible fourth-wave pullback from a 100 bottom. This is also a downside channel top resistance and a Fibonacci retracement of 50% from the November 2021 top. A break below 200 is required to confirm that we are in the fourth wave pullback and that the downside will continue. A break above 275 is exposing a test of important 300 resistance and a break above this level will lead to a strong long trade signal.
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As the famous trader says…
” Win or lose, everybody gets what they want out of the market. Some people seem to like to lose, so they win by losing money.”
Ed Seykota
How to trade this?
Obviously, for Q3 2023, we have this upside resistance zone 275-300 which should be broken higher for an upside continuation. This means that now short trade entries and buying put options have some advantage over long trade entries as this recent move higher seems not so strong at this point. A break below 245 would give us a high probability of short trade. It would be best if you opened a short trade here first. The risk to reward on this trade is higher than 1, and the trade could be from Monday any NY session upon a break below 245 to target 193 with a stop loss above 270.
