TSLA about to start a distribution zone
The news is good. Everything is positive. But what is a chart saying?
22 Jan – too high volume , narrow spread, poor closing – this bar tells about hard supply around 600 figure. A pullback was expected.
- 1] – pullback. Note, the volume decreased. It was a positive call for bulls to produce the second attempt to overcome the heavy resistance 600.
- 2] The second attempt started as the price began to climb higher amid an increase in volume. With the help of good earning event, the TSLA stock pumped above 600 as the to-the-moon rocket.
The latest bar has too-high-volume to represent genuine strength. I believe this from 680-to-780-bar can start the major zone of weakness. I expect the wide fluctuating between 800 ( resistance) and 600 (It should act as support now) during the next months.
Home
Yes, You Can Become a Professional Chart Reader
To build success in any business, you should rely on things that really work.
In Chart Reading Method, they are three: The Law of Inequality, The Law of Supply & Demand, The Law of Effort & Result.
Download free books, to understand how can you apply the Laws and convert charts into profitable setups daily!
Enter your email to Download books
Start building your success with Chart Reading method. Let’s not go back to what wasn’t working anyway.
No spam is guaranteed.