Hi Traders! Tesla technical analysis and short term forecast is here. We do our analysis on the MetaTrader4 platform (MT4), some very interesting, useful tips and hacks about the MT4 platform could be found here. As we do in every technical analysis post we are going to perform the multi-timeframe technical analysis on Tesla in order to find possible trading opportunities. If you would like to learn more about the way we trade and the technical analysis we use then check out the Traders Academy Club Spoiler alert – free memberships are available! Let’s start our analysis from the highest timeframe which will be the H4 chart here.
On the H4 chart, we have a key support zone that has formed based on the 261.8%(608.29) Fibonacci expansion level of the first wave and the 61.8%(682.61) Fibonacci expansion level of the second wave. The price which was moving lower, reached this key support zone, respected it and is currently bouncing higher from this zone. Also, we have multiple bullish divergences that has formed between the first low that has formed at 974.42 and the second low that has formed at 620.47 based on the MACD indicator, which we may consider as evidence of bullish pressure. In addition to this, the ADX indicator gave a bullish signal here at the cross of +DI (green line) versus -DI (red line) and the main signal line (silver line) reads value over 25, we may consider this as yet another evidence of bullish pressure. So everything looks good here for the bulls and we may now move down to one timeframe lower and look for evidences supporting this short term bullish view.
Looking at the H1 chart, we could see that the price which was moving lower created a bullish divergence that has formed between the first low that has formed at 679.55 and the second low that has formed at 620.47 based on the MACD indicator. The price then moved higher and broke above the last high at 679.70 creating higher highs, thus forming a classical setup of bullish divergence followed by bullish convergence. Hence as per the book scenario, after a bullish convergence, we may look for corrections to happen and then further continuation to the upside. In addition to this, the ADX indicator gave a bullish signal here as well at the cross of +DI (green line) versus -DI (red line) and the main signal line (silver line) reads value over 25, we may consider this as yet another evidence of bullish pressure. Also, currently there are no signs opposing this short term bullish view. Until the key support zone shown in the image below (marked in blue) holds my short term view remains bullish here and I expect the price to move higher further.
Tesla H4(4 Hours) Chart Analysis
Tesla H1(1 Hour) Chart Analysis
It is always recommended to look for confirmations before you jump into any trade. If you are not sure about how to trade this short term buy setup then you can use any setup and strategy that you have in your arsenal to look for bullish moves and join this buy trade.
Also, don’t forget to protect your buy trade using a stop loss and make sure to set a target and keep a proper risk/reward ratio.
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Happy Trading!
Arvinth Akash
Traders Academy Club Team
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