Why Tesla might have further to fall
I use the Long term dynamic zone and the short term dynamic zone, to analyse the short term and long term trend of a stock. We can see candles above the long term dynamic support trend during the bull run in 2021.
It looked vulnerable when it dropped below both the long term and short term dynamic trend zones in May 2022. A failed rally which started around Aug 2022 eventually failed again by Oct 2022. Ever since, it has been on a big down trend.
We can see earlier this year it tried to rally again in Feb and Mar 2023 but was unable to break through the long term trend zone which is acting as a dynamic resistance.
If it fails the most recent low around 153, it could potentially drop quickly to around the low put in on Jan 2023. Until the short term dynamic trend can cross above the long term dynamic zone, I remain bearish on the Tesla stock as long as it remains below the 200 moving average and the long term dynamic trend zone.
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What PE is justified for Tesla? I’d say 25-30. Add 10 for the cult following and you have 35-40. Before years end, I believe that’s where the price will be. Tesla’s earnings have to be very good beyond what’s attainable.
💭 Will Tesla be able to break through the long term dynamic trend zone anytime soon?
🤔 How much lower can Tesla's stock price potentially go if it fails the most recent low?
TESLA needs to innovate and build on its name and technology. In my opinion, many new EV companies till eat their lunch unless Musk pays attention to his business.
The reversal candle on 27-Apr-23 has started a short term bullish trend, making higher highs and higher lows. It is now also interacting with the long term trend zone again and I want to see and impulsive move above this zone on good volumes.
buy on dip and let it ride until 200....that's me!
$Tesla Motors(TSLA)$ showing some good price action into the LT dynamic trend zone. Pullback on 23rd and 24th of May looks corrective and stayed above a previous resistance level which is now acting as support. We want to see shallow pullback with low volume or consolidation sideways from here before hopefully continuing the bullish trend.
Once it has hit 182.39 we will go down further.
Will we crash through 180 at the opening?