TSLA. Current Weekly Trend: Bearish, likely to change to bullish soon
Tesla shareholders have caused an imbalance in the supply and demand for buying and selling due to the approval of Elon Musk's $56 billion compensation package, resulting in a revised outlook for the stock's trend.
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.
The potential for the trend to enter the Bullish zone soon is high, prompting the need to consider a change in investment strategy at this juncture.
The 'Sell and Observe' position has been maintained for 23 weeks since the entry into the Bearish zone. During this period, the cumulative rate of loss in the Bearish has been -16.4% as of the current date.
Short-term strategy
Indicating that [Bearish] We are currently in a bearish zone so far. But It is likely to change to a bullish zone within a few weeks.
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 rebound trend in an upward-trending market with a box pattern of price fluctuations, marked by small declines and upward fluctuations. and It's maintaining a suitable Buy-Sell intensity for the current trend conditions.
A rebound trend can be considered a breathing moment with a temporary price or time-based recovery where the strong selling pressure momentarily eases, and there is a temporary emergence of strong buying interest.
It is expected that the overall trend movement over the next 10 weeks will follow a strong upward direction, with a ratio of 5 : 5 for the downward to upward direction, with the proportion of the upward and downward trend being equal. However, in terms of the expected intensity of the upward and downward movements, the upward intensity is somewhat higher, while the downward intensity is somewhat higher.
A suitable investing position is 'Neutral' for now. The appropriate buying timing is predicted to be this week or next week.
https://www.pretiming.com/2024/06/tsla-current-weekly-trend-bearish.html
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