Chart Analysis – Week Ahead

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

Trade idea of ​​the week

(NYSE:TSLA – Tesla Inc – BULLISH BIAS

  • Key levels on the chart – consider trades from key support/resistance zones.
  • Following Tesla’s stock split, the downtrend stock has continued to fall since its early 2022 peak.
  • A high-yield environment and an impending economic recession have hampered the company’s future cash flows, affecting its present value and, in turn, its share price.
  • As one of the most traded stocks, this presents opportunities for both short-term traders and long-term investors, and the opportunity to potentially short the stock short-term but look for potential buying opportunities over the long-term, depending on your view.
  • Also this week, we have Tesla’s Q3 earnings report which will review how the company fared in the third quarter and what the outlook is for the fourth quarter and beyond, highlighting any challenges and how the Tesla Chef intends to navigate this uncertain environment.

  • On the bright side, Tesla’s sales in China have continued to rise significantly despite the current uncertain economic situation in China, reaching record levels following the modernization of the Shanghai factory (Reuters).

  • As we sit near a key support level on the daily chart, there is a chance that we might spot short coverage to push the price back up before selling further lower. If gains 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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