ABC Correction on 10D chart? SHORT to $465

Greetings,

As a TSLA fan, it pains me to take a SHORT bias on this monster stock. However, after examining the 10D chart, I clearly see an ABC pattern with a target around the $465 area. Note the bearish MACD crossover, which is distinct on the 10D chart.

Initially, I was optimistic after spotting the ascending triangle pattern on the daily chart, which is usually a bullish pattern. However, technically, the triangle is a continuation pattern, which I interpret that TSLA may continue the trend previous to this pattern, which is a downward trend.

I’ve added a FIBO retracement series to the chart, since TSLA may climb to the 38% ($675) area in a false breakout, before completing the C wave.

Daily Chart:

Strategy:
I may sell a few SHORT CALL verticals around the $650/$700 strike

Happy Trading!

Commentaire:

Very nice breakout from the Ascending Triangle pattern, with a strong move in volume. If TSLA can breakout the larger descending triangle pattern, as shown below, then my bias is bullish.

BTW, I'm LONG the 20 Aug $640C.

Happy Trading

Commentaire:

There was plenty bullish volume on this breakout. Use the Swing pivots as upside targets. TSLA will test R1 again and again, until it breaks above to test R2.

Commentaire:

Second test of trend resistance failed at R1 (~$700), with strong volume. Will TSLA close the $657 gap, and bounce upward, or fall back into previous resistance around $630? Time will tell.

Commentaire:

Waiting to see if TSLA breaks to the upside or downside from this small channel. My current bias: Bearish.