Tesla technical analysis: Should I buy?

Tesla has just reported profits that were a little bit underwhelming, and as a result, the stock price is now down slightly over 6% after hours. This makes it quite near to the even amount of $200. When a stock price is really near to a natural “magnet” that many people take into consideration, the likelihood of it being examined increases. Usually stocks that disappoint after earnings , take some time to recuperate, if they rebound at all, and do not bounce up straight away. It takes several weeks, at least, to restart the underlying assumptions driving the stock’s perceived value.

In addition, the next piece of technical analysis demonstrates how the stock is moving closer to testing the VAL (value area low) of the volume profile of the exhibited price range, which can be found at $191. If I were interested in purchasing TSLA shares, however, I would not do so until that time, despite any tweets by Elon which might be desperate or comforting (you decide). But I would look at the Tesla technical analysis and TSLA price chart, more than TwitterLand.

Even taking into account the factors mentioned above, the TSLA stock purchasing process must to be slow and deliberate. If, at that price, the smart money—which may know a lot more than I do about investing—considers TSLA to be a bargain close to $190, then the price would construct a technical base there within the maximum of two months, producing four to eight weekly candles, and then it would rebound higher. In light of this, I would not spend the whole of my funds until confirming the price action over those two months.

As the technical analysis video for TSLA shows, the possibility exists that Tesla stock is also printing a “head and shoulders” pattern, with the neckline at the point of control (PoC) located at about $191. Even if the likelihood of it happening is low, there is still a possibility that it might. A measured move from the all-time high (ATH) with that neckline as the midpoint of the measured move may take the stock price to around $125, which is approximately 44% less than the price of Tesla shares on the evening of the earnings announcement, which was $222.

You should only trade at your own risk and check out ForexLive.com technical analysis for more information and viewpoints.