Why I Bought Tesla (TSLA) and Signs of Reversal
1. Strong Support at $325.10
Tesla recently hit $325.10, a key support level where buyers previously stepped in. The price bounced off this level, indicating strong demand and forming a potential bottom. Buying near this support reduces downside risk and increases the reward potential if the price rebounds.
2. Bollinger Band Squeeze and Lower Band Rebound
The price touched the lower Bollinger Band ($327.61), which often signals that the stock is oversold. The following green candle breaking above the previous day’s close indicates a potential trend reversal from the downtrend.
3. MACD Showing Bullish Divergence
The MACD (12, 26, 9) shows a possible reversal setup despite being negative:
• The histogram’s red bars are shortening, suggesting that the bearish momentum is weakening.
• The DIF line (-14.50) is moving closer to the DEA line (-11.03), signaling that a bullish crossover may occur soon.
4. Last 3 Days Candle Reversal Pattern
The last three candlesticks show a classic reversal pattern:
• Day 1 (Long Red Candle): Panic selling drove prices down to the support.
• Day 2 (Doji Candle): A doji appeared, reflecting market indecision and a possible change in direction.
• Day 3 (Bullish Green Candle): A strong green candle closed above the previous day’s high, confirming buyers are taking control and signaling the start of a reversal.
5. Potential Resistance and Target
My target is around $381 (mid-Bollinger band) and possibly $406 (previous resistance) if the breakout continues. I plan to monitor volume and MACD for confirmation.
In conclusion, I bought Tesla based on a combination of support levels, Bollinger Band signals, MACD divergence, and a confirmed three-day candlestick reversal pattern. I’m confident in this entry and will manage my risk with a stop-loss below $325$Tesla Motors(TSLA)$ @MillionaireTiger
@TigerStars @CaptainTiger @CaptainTiger @Daily_Discussion @TigerTradingNotes
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
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