$TSLA is under bearish pressure on the monthly, weekly and daily time frames. Candles and technical indicators point further down. Let’s explore the hypothesis from the different angles.
The monthly continues to be under influence of two Bearish Engulfing combos. So far, the June’s candle is flirting with the 8 EMA line. RSI is slowly moving down from the overbought area and it will take months. We will see how the monthly candle positions itself Jun 30.
Odds: Moderately Bearish
This week candle started very green. However, all it managed to hit the 8 EMA line and get rejected. In the end, it formed a candle that is considered as a bearish continuation one, although it closed very close to the borderline.
If you look at the RSI, it continues moving down and is still below 50. The 8/20 EMA bearish cross and bearish PSAR support the bearish stance.
On Friday, TSLA formed a Hanging Man/doji type of candle and note its position. It is between 8 and 20 EMA lines and just a few pips above 200 MA. Literally sitting on a fence and a strong bullish or bearish candle in the next few days could determine the path.
The RSI was above 50 in the middle of Friday, but fell below by the close. This and other technical indicators are yet to support a rally.
I can see a few scenarios in the tight range:
- If on Monday-Tuesday TSLA closes below ~605, the decline is likely to continue.
- If TSLA makes at least two green candles in a row that close above ~623, there would be a good chance that a rally started.
Based on the all time frame odds, I favor the former.
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