TSLA close analysis 7/20/2023

20 juil. 2023

Earnings brought forth a pretty big sell off. In hindsight, the oscillator cross yesterday was initial indication a short was the right play, but ER could have gone any which way making that a signal lacking confidence.

What happens now is the question. We've cleaned up this chart a bit:

• My long trade was wrapped up on 7/17
  
• 2 gaps are gone
  
• 3 larger gaps remain as support
  

I still think gap + momentum analysis is the best approach with TSLA on this 65m chart. Note how we temporarily stalled at open right on the gap from July 12th.

Right now we're waiting for support. I've marked prior gaps with arrows. Most of those seem pretty far away.

Good chance support is right here in the lower 260's but there needs to be some confirmation as TSLA has in the past had many consecutive sell off days.

Why support? I had many old fib levels all in this 257-263 zone and expect for now it will hold as there's a lot of choppy price action with traders wanting to go every which way in this zone. The 6/30 gap is what I'm watching along with the 260 level. I'd like to see this act as support and go long after the oscillator bases and crosses but I'm also very willing to see it fail. If 260 fails, I will be looking for us to retest the mid 230's.

Will post a new idea once I see an actual trade form.