“Spinning” Its Wheels:
One of the most watched companies in the world, for a variery of reasons, is starting to trade in a very volatile fashion. This type of action is often associated with tops, as bottoms are just the opposite with gradual, taut, rounding behavior. The daily chart below of TSLA does open the door for an opportunity however in the 365 area which would be the initial touch of its 50 day SMA after a recent breakout. On its WEEKLY chart, we can see the dubious candles with a bearish shooting star candle and then a doji the weeks ending 12/20-27. The latter candle is often a good predictor of a trend change from the prevailing direction. Investors could have been put on alert after the bearish counterattack candle the week ending 11/15 (circled), but the name surged right on by. As the negative candles begin to pile up the weight of the evidence gets harder to ignore. The MONTHLY chart shows the failure to CLOSE above the long cup base trigger of 414.60 in December. With all this beiong said if the 365 area holds I think a long position can be taken. Use a CLOSING stop below 348, beneath the intramonth lows of December.