Tesla Oversold and Nearing a Bottom
TSLA: Tesla Oversold and Nearing a Bottom
Tesla broken down into the most basic indicators is Oversold.
Since June of 2022 Tesla has reversed each time when the Money Flow Index has come close to or crossed the 20 Line and once again is encrouching on the 20 marker and remains Bearish. The TSI is still showing the current trend as continuing. Right now yesterday's candle has settled into the 1st Long Term Support Price Channel and I suspect will remain here and possibly trade flat for several days as the MFI concludes its pattern.
I am waiting for a couple of confirmation signals to determine when to buy however for anyone that is holding Tesla Longterm for 5 plus years in your portfolio or wants to add it or accumulate more then at this price level this is worth a serious look.
Tesla however is finally at a Price to Sales Ratio that is more in line with it's peers so the price may remain lower through 2024 than the sustained run through 2023 so far. One last note in looking and waiting for a reversal is that a further drop to $186.00 is possible but as I said we need to see a combination of indicators in agreement for a reversal before jumping back in.
Notice in this 4 screen split of todays chart as to what we are seeing. The MFI has continued it's Bearish move and crossed the 20 mark indicating selling pressure is still dominant. The TSI is also still low and when it begins to turn horizontal and possibly move higher, if the MFI has turned positive at the same time those would be 2 confirmations for a reversal.
Right now though also showing you the PPO lower than minus 8 along withand ADX above 25 are a 98% positive precurser for a reversal but it's a matter of when will we get confirmation to jump in.
Today's Bullish candle is firmly inside the Long Term Price Support Channel, but still trending below the 7 day EMA. I'd rather miss buying the bottom than jumping in too soon and have the price drops again. Waiting for confirmation of a reversal can test your mettle. "Results happen over time, not over night. Work Hard, Stay Consistant and be Patient."
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