To The Moon

Earlier this article, I said that $Tesla Motors(TSLA)$ was showing a short-term bearish sentiment. Price was trading at $389. Today, the stock is trading at 328.50.

This was what I write in the earlier article.

The chart shows a recent pattern of lower highs, which suggests a short-term bearish sentiment. This indicates that in the near term, Tesla's stock is experiencing decreasing peak prices, which could point to a cooling off from previous gains.

In this article, I will discuss Tesla's price now.

Support Zone

• Support Level at $315 to $325 : Price is very near to a support zone now. Previously in the article I highlighted the support at 330.

The second, deeper support level is at around $330.54. This acts as an additional buffer that could stabilize price drops, ensuring the continuation of the overall uptrend.

Volume Patterns: Key Insight

• High Volume During Price Drop :The second chart reveals a significant increase in trading volume as the price declined toward the $315–$325 support zone.

• This is a bearish signal , as it indicates that sellers are actively driving the price lower with conviction. High volume during a price decline often reflects distribution —a situation where institutional or large traders are aggressively selling their positions. This could lead to further downside if the selling pressure persists.

Potential Scenarios :

• Bearish Scenario : If the price fails to hold above the $315–$325 support zone and breaks below it with high volume, it could signal a breakdown. This could lead to further downside, potentially targeting the next major support levels (e.g., $280–$300). A short DLCs (e.g. $TESLA 3xShortSG261006(TSXW.SI)$ ) can take advantage of anticipated price drops.

• Bullish Scenario : For the bulls to regain control, the price would need to reverse from the current support zone. Look out for reversal patterns or candlestick. A Long DLCs (e.g. $TESLA 3xLongSG261006(TSYW.SI)$ can capitalize upwards movement.

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