Technical Pulse: Tesla, Inc. October 13, 2022 446


Tesla, Inc (NASDAQ: TSLA) A potential bounce to retest the previous support turned resistance zone as:   


  1. The formation of a spinning top candlestick pattern on 12 October at the confluence of a trendline support and horizontal support zone suggests recent bearish momentum is fading and the trend could be due for a short term reversal.
  2. Bullish divergence was also observed where the Moving Average Convergence Divergence (MACD) technical indicator displayed decreasing bearish momentum while price made a lower low into the support zone.
  3. The price could reach the resistance level near 260 to fill a price gap where it meets the 50% Fibonacci retracement level using the swing high of 313.80 and swing low of 211.51 as points of reference. Elliot wave also suggests the stock could make a wave 4 pullback into the resistance zone in the current downtrend where the 260 price level is a 61.8% Fibonacci retracement level using the wave 2 highs and wave 3 lows, given the current wave 3 has reached a 161.8% extension.


*Expected timeline of the trade is 13 weeks from the date of report issuance.




Red box = Resistance zone

Green box = Support zone

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About the author

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Zane Aw
Technical Analyst

I analyze the stock market and conduct technical analysis to provide investment recommendations. I look forward to having a conversation with you in our in-house seminars and presentations to identify good risk-reward trading strategies together. I graduated from Nanyang Technological University with a Bachelor of Accountancy (Honours).

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