Till the $1020 resistance is breached on the daily and the weekly time frame, with the candles opening and closing above the resistance, we cannot really assess the bullish continuation of TESLA. Therefore, we will continue to short the stock.

At the $1000 mark, tesla has started its bullish momentum and trend. During this trend, it should also be noted that market does not follow one direction only. What we are anticipating is a retracement back to the recent support level priced at 920. This 80 dollar move can be monetized as part of the corrective move. Although market has formed higher highs and higher lows, with a bullish structure, this short sell is a risky short.

Earlier, the ascending trendline was broken out for sells, which is now being retested for the shorts at the resistance level. This is another confluence point for us to go short on TESLA. Later on, we saw a descending trendline being broken out for buys, which was validated by the price action of opening and closing above the trendline. Therefore, mixed signals on the trendline breakouts.

The sell retracement level of 75-78.6% aligns completely with the resistance level. This will act as a confluence point for our shorts.

Both the EMA's are still bullish and require a retest at the support level before further buffing up and contiuing momentum. This retest would be our profit target.

Both the oscillators RSI and CCI are in an over bought situation. This needs to be neutralized. This over bought situation on the oscillators align with the resistance level given that they need to be neutralized further down for us to profit off from the retracement.

This is a risky setup on TESLA as we are taking a counter trade with the trend being bullish.

Continuing Tesla shorts

Apr 24 2022