Tesla broke out of the support level but was unable to keep the bearish momentum intact. Market broke back in above the support turn resistance. This indicates, there was no price action validation after the breakout sell from the support. 

We will technically evalute the script on daily.

Tesla has been in a bullish trend since last year, continuin this year. Market is currently at the support level which has been tested twice earlier. Give the structure of higher highs and higher lows, we need to continue to look for buys from support level, where the market is currently residing.

There has been a trendline breakout buy. Candles have validated the breakout buy by opening and closing above the trendline.

The fibonacci retracement level is in confluence with the support level. The golden area of 75-78.6% perfectly maintains the bullish strength on the move.

Both the EMA 200 and EMA 50 are in a bullish momentum, with a bullish death cross. Right now, EMA 50 is being retested at the support level, hence giving another confluence factor with the support level and retracement level.

Both the oscillators are in a bearish momentum. In this case, we will wait for the oscillators to fall into the over-sold region, from where a bullish divergence can be formed on either of the oscillators.

Tesla is a strong bluechip stock. Technically and fundamentally Tesla is still in a bullish cycle.

Tesla faked out the support

Feb 17 2022

Stop Loss -11.66%

Holding time 5d4hr

302.59

Entry price

267.32

Stop loss price