Stock of the day: Tesla
09 March 2023
Today, I would like to provide a brief update on Tesla, which we analyzed a month ago on February 8th. At the time, Tesla was on the rise but approaching a key resistance level. We proposed a trading strategy and concluded with the following statement:
“As you can see, our sentiment remains slightly pessimistic. In my opinion, in the short-term, we can get further rises but, in the mid-term, we should expect bearish correction – especially after the contact with the 38,2% Fibonacci.”
As it turns out, our analysis was accurate. On February 16th, Tesla's price finished its bullish correction, reaching the blue rectangle and the neckline of the H&S pattern. Since then, the stock's value has been decreasing, indicating a return to the long-term bearish sentiment. As long as Tesla remains below the blue rectangle, the sentiment will remain negative, and a decline towards $118 seems more likely.