This Marks A Major Inflection Point For Tesla (TSLA) | The Mesh Report

This Marks A Major Inflection Point For Tesla (TSLA)

Christian Tharp, CMT June 21, 2022 Comments Off on This Marks A Major Inflection Point For Tesla (TSLA)

Tesla, Inc. engages in the design, development, manufacture, and sale of fully electric vehicles and energy generation and storage systems. It also provides vehicle service centers, Supercharger stations, and self-driving capability. The company operates through the following segments: Automotive and Energy Generation and Storage.

Take a look at the 1-year chart of Tesla (NASDAQ: TSLA) below with added notations…

Chart of TSLA provided by TradingView

TSLA has formed an important level of support around the $620 mark (blue). The stock rallied off that mark last month but now appears to be declining back down to $620. Even though the stock may bounce of support again, if the $620 level were to break, lower prices will likely follow for TSLA.

The Tale of the Tape: TSLA has key support area around $620. A trader could enter a long position at or around the mark with a stop placed under it. If the stock were to break below the support, a short position could be entered instead.

Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.

No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade.  Capital preservation is always key!

Good luck!

Christian Tharp, CMT


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