In today’s second Finlogix analysis, I am including another NASDAQ listed stock Tesla (TSLA).

I have made one some time ago which ended in a loss.

https://www.finlogix.com/analysis/20220719/tesla-might-be-trapped-in-a-choppy-weekly-range-bound-trading

After a quiet Wednesday, 7 out of the 12 long list of US major economic data are still due to end the week. 5 of the remaining 7 be released tonight.

These are inflation barometers and the markets will be subject for moderate to heavy volatility, including the stocks.

Assessing Tesla’s high timeframe candles:

Weekly Candle: Developing a Red Long Upper Shadow

Daily Candle: Developing a Red Long Upper Shadow

Total bearishness from yearly down to the daily  candles!

Specially noting the yearly candle is an imperfect Red Marubozu suggesting a very strong selling with very little head and tail wicks.

Both the weekly and daily candles are developing red long upper shadow candles clearly unable to sustain the trying buyers!

Tesla as a stock company is weak fundamentally and charts exploiting its weakness. One of the least performing NASDAQ stock companies in 2024.

Even though looking oversold, I am not going to buy in. Not just yet.

Tesla is weak for the year and unable to find a stable short term support.

Rally attemps in January to February were heavily sold.

Weak March opening leaving an uncontested gap.

This gap is our hint for potential drops at least towards April 2023 lows.

I will ride the down wave seeking the liquidity under those lows. It’s like shorting Tesla again where I left.

Price still holding from last week’s supports but I will enter a short position in advance anticipating its breakdown for further dropping.

In case if I am wrong, the stop loss is set to the opening gap’s full retracement mentioned.

If I am right, taking profit under the liquidity of April 2023 lows.

PS: It’s getting nearer to that levels.