After taking a loss on Tesla after going long, we will be taking another attempt at the same level of support we had previously identified. At the 880, we have a strong support level with the demand zone where we anticipate a correction towards the 1020 price level. This is the price, we will be going long. Market is still bullish on a higher time frame, forming higher highs and higher lows. This support should form another higher low for the continuation upwards.

The descending trendline has been broken out for buys and validated by the price action. That being said, we need to wait for another trendline breakout for the confirmation of the breakout buy. This trendline is in formation and yet to be broken out.

At this current level, there is the golden retracement area of 75-78.6%, which is in confluence with the daily support level. This means, the strong held is going to be holding up strongly.

EMA 50 is bearish, EMA 200 is being retested at the support. but the death cross is still bullish. Market has broken out for buys from both the EMA’s and has to retest either of the level. Currently, the EMA 200 is being retested at the support level. This support if retested will have three technical factors aligned.

RSI and CCI, both are in a bearish region whereas. We can either wait for a bullish divergence at a lower time frame or we can wait for both the oscillators get into an over sold region at the support level.

Tesla in the long term is bullish but we need to cash the movements of it in order to capitalize the wave theory of the structure.

Re-attempt on Tesla

May 03 2022

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