Stock of the day: Tesla

In today’s analysis we continue our journey across carmakers. We’ve already analyzed Ford, Rolls-Royce, Ferrari and Tesla. Today we’re back to Tesla as a proper trading signal can be inches away from us.

In our previous analysis of Tesla, we were quite bearish. I can honestly say that this was one of the very few times when we weren’t entirely accurate. It will happen sometimes; we can’t be 100% right all of the time. Back then we were bearish and it’s not that the price skyrocketed it just moved in the sideways trend without any clear direction.

Now it looks like the sideways trend is ripe enough to come to an end. At the end of every sideways trend there is a breakout and a later directional movement. That’s what we’re waiting here for. The question remains: Which direction?

In order to answer that, we need to consider that for the past few weeks buyers have managed to convincingly protect the long-term uptrend line (red). As long as the long-term uptrend line remains intact, the main sentiment is positive and the breakout of the upper line of this giant triangle (red lines) seems more probable.