Long-term strategy
The current trend zone is Bearish, and Investment position suitable for the trend zone is Sell and Observe.
The trend within a Bearish zone is divided into a 'Downtrend' in the downward direction and a 'Rebound Trend' in the upward direction. In the Downtrend, there is a strong downward flow with occasional upward movements, while in the Rebound Trend, there is a fluctuating flow involving limited or temporary upward movements and downward fluctuations. Investing in this zone is associated with low expected returns and a higher risk of decline.
In a Bearish zone, there is potential for strong selling pressure to persist, resulting in a pronounced downward trend and a relatively weak upward rebound trend. When considering a medium to long-term investment strategy, if the trend moves in the Bearish zone, one can anticipate a downward flow of the bearish trend, allowing for the possibility of avoiding high downside risks or potentially gaining profits by investing in inverse stocks.
This is a method of waiting, observing the overall market conditions after selling in anticipation of a general price decline, and then making a buy decision again. And when the trend enters a Bullish zone, it becomes the Buying point.
As there are no anticipated changes in the trend zone that warrant considering a shift in investment strategy at this point, it is advisable to maintain the current investment position.
The 'Sell and Observe' position has been maintained for 5 days since the entry into the Bearish zone. During this period, the cumulative rate of loss in the Bearish has been -0.4% as of the current date.
Short-term strategy
Indicating that We are currently in a bearish zone. Therefore, it is recommended to implement a strategy to reduce risk and take a suitable investing position.
In a bearish zone, where selling intensity is potentially strong, considering the possibility of a significant downturn at appropriate selling points is crucial. Hence, in the short term, an active and aggressive selling response is effective. During buying moments, it is advisable to adopt a wait-and-see approach or a conservative response with low exposure for purchases. Responding promptly to sell during upward movements can be utilized as an opportunity for risk hedging.
Currently, it's in the midst of a downtrend characterized by a strong downward price momentum, with temporary rises and strong falls. but When the stock market opened, the Buy-Sell intensity had turned into a stronger buying flow.
A downtrend is characterized by an overall strong downward flow driven by strong selling pressure.
It is expected that the overall trend movement over the next 10 days will follow a strong downward direction, with a ratio of 6 : 4 for the downward to upward direction, indicating a higher proportion of the downward trend. And, in terms of the expected intensity of the upward and downward movements, the downward intensity is higher, while the upward intensity is moderate.
A suitable investing position is 'Sell(Bearish)' for now. The appropriate selling timing is predicted to be either today or tomorrow.
https://www.pretiming.com/2024/05/tsla-on-may-15-2024-tsla-stock-closed.html
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