To The Moon

$Tesla Motors(TSLA)$  has been on a bear trend. recently the rocket launch was hailed a success but the rocket went missing. cathie wood doubled down on tsla as tsla share price trends down. 

looking at tsla's pnf, it is heading towards 158 to form a double bottom before rebounding to 243. 

tsla is the leader of the ev industry. ev industry growth is declining. tsla is trying very hard to maintain market share by cutting prices. a price war in the ev industry is raging. this eats into profits and even causes huge losses in small ev stocks. some ev stocks went bankrupt. 

the ev industry is heavily affected by the fed interest rate. borrowing cost went from easy money to sky high. the recent fomc meeting gave some hope of 3 rate cuts later this year. however inflation is still resilient. 

$US2Y(US2Y.BOND)$ is an important indicator to watch. this is the expectation of fed interest rate. when it trends up, tsla will trend down. 

$Invesco QQQ Trust-ETF(QQQ)$  is another indicator to watch. the whole tech sector is badly affected by the high interest environment. before the generative ai craze, nvda was badly sold. now it is the king of ai stocks. recently, qqq showed signs of loss in momentum. most investors would have took profit and wait for market to dip before buying again. there are so many gaps to fill. 

do apply automatic investment system where you add shares at each 10% drop or at support zones if you know technical analysis. this way you conserve your capital while the stock is strongly downtrending. do take profit at 10% intervals or at resistance zones if you know technical analysis. this way you have capital to buy the dip. only applies to stocks in an index or warren buffett would approve. bon courage.

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