Technical Pulse: Tesla Inc January 25, 2021 475

Tesla Inc (US: TSLA) Technical indicate that it is poised for an upside after a series of consolidation last week. :

  1. Tesla has completed wave ((1)) of the primary phase and current wave count indicate that the wave ((3)) is far from complete. Diving into the sub-waves count, we are facing sub-extended wave (iii) which currently we have completed corrective sub-wave abc which represent wave iv of the sub-extended wave.
  2. The pennant formation is a smaller fractal image of the 5-wave symmetrical triangle from August 2020- November 2020. Also, the smaller pennant is an indication of a bullish continuation pattern.
  3. On the 3rd touch of the pennant, Tesla display a strong full body of the bullish candle, which signify a strong bullish return.
  4. Tesla has been making a series of higher highs and lows and with prices trending both the 50 and 200-day moving average, and the mean distance is far from the current price to the 50-day MA, which means that the stock is still in a strong bullish uptrend.

 

*Timeline of the trade is 4 weeks from the date issued.

*Should the stock fails to break the top of the pennant at US$884.83, the stock may revert and test the support zone at US$750 region.

 

CHART LEGENDS

Moving averages

Red dotted line = 200 Periods MA

Blue dotted line = 50 Periods MA

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About the author

Profile photo of Chua Wei Ren

Chua Wei Ren
Technical Analyst
Phillip Securities Research Pte Ltd

Wei Ren specialises in Technical Analysis and has 11 years of experience in studying classic technical price action. He also study and research extensively on Elliott wave theory, Dow Theory. He believes that history plays an important role in how the market is reflected in the future.

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