Chart Analysis – Week Ahead

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Check out this week’s trading idea below, from your friendly neighborhood market analyst!

Trading idea of ​​the week

(NYSE: TSLA – Tesla Inc – BULLISH BIAS

  • Key levels on the chart – consider taking trades from key support/resistance areas.
  • After Tesla’s stock split, the bearish stock has continued to decline from its peak in early 2022.
  • A high interest rate environment and an upcoming economic recession have hampered the company’s future cash flow, which affects its current value, thereby affecting its stock price.
  • Being one of the most traded stocks, this presents opportunities for both short-term traders and long-term investors and the potential to potentially sell the stock in the short term, but look for potential buying opportunities long term, depending on your point of view.
  • This week we also have Tesla’s third quarter earnings report, which will highlight the company’s performance in the third quarter and what its outlook will be for the fourth quarter and beyond, outlining all the challenges and how the Tesla boss aims to navigate this uncertain environment.

  • On a positive note, Tesla’s sales in China have continued to increase significantly, despite China’s current uncertain economic situation, reaching record highs in Shanghai after upgrading its factory (Reuters)

  • Given that we are near a key support level on the daily chart, it is possible that we will see a short cover to drive the price higher before continuing to sell lower. If earnings and more importantly forward guidance are poor, we could see a break of this key support zone around $200, where price can retest this descending trendline.

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