Where Next For Tesla?
Anna Coulling | Nov 26, 2021 07:04AM ET
In the pause point of celebrating Thanksgiving and a four-day weekend, I thought it would be a good time to review some stocks and have decided on the daily chart for Tesla (NASDAQ:TSLA) following my recent analysis to see where we are heading in the short to medium term.
Regular readers will recall that in my last post for this stock, it was the wide spread down candle of Nov. 9 which dominated the chart which also triggered the volatility indicator which signals one of two events. Either a reversal or congestion within the spread of the candle, and it was the latter I suggested we would see over the next couple of weeks, which has indeed been the case and there are several interesting facets to what follows.
First, note how volume is falling away in general as the stock attempts to rally and break away from the volume point of control at $1050 per share and to which the price is retreating once more. This is the fulcrum of the daily chart at present and where price is in agreement. In other words, there is no strong bearish or bullish bias to drive the price action. Second, note the weakness on Nov. 22 emphasized with a pivot. In this instance, a stock attempts to rise in the session on a gapped-up move but is knocked back and closes lower on the day with strong volume. The market makers are selling into weakness here which is confirmed the following day with a wide spread down candle on increased volume.
So in short, Tesla is struggling to recover the longer-term bullish momentum, and given the depth of volume building on the VPOC histogram this will provide a significant barrier to progress higher and so in the short term, I expect to see further congestion around the VPOC and if volume fails to increase dramatically, we could see the stock weaken, and is so a low volume node awaits at $950 per share.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.