“Electric” Earnings:
As a bevy of big earnings announcements were reported this afternoon, some of rising on “weak” numbers. This is classic bull market behavior, but I do not think the recent volatility we have experienced is going anywhere. The daily chart below of TSLA showed a 100 handle decline in just the last 6 weeks and Wednesday CLOSED right at the rising 50 day SMA. The initial reaction was right down toward 365, which I still feel will be touched again before the rally resumes. The WEEKLY chart still has to deal with the bearish shooting star and doji candle the weeks ending 12/20-27, but those are at much higher PRICES. This could be reminiscent of the prior WEEKLY doji candle recorded the week ending 7/12/24, which started a 5 week losing streak. We have spoken about this before but Friday marks the end of January and bulls want to see a CLOSE above the 414.60 cup base pivot in a pattern that began with the MONTHLY doji candle in November 2021. Notice December was well above it but did not manage to CLOSE above and if one has a sanguine view on the name it would not look good with 2 consecutive MONTHLY CLOSES below the 414.60 trigger. It has Thursday and Friday to make sure it does. Buckle your seat belts. Will this one has gas to pull off the breakout?