Stock of the day: Tesla

It’s time to check out what happened with our last analysis on Tesla! It was October 19^th and the price was around 850 USD when we wrote:

“Where’s that coming from? Well, maybe because Michael Burry said he’s no longer shorting Tesla? Whatever the reason, from a fundamental point of view, we do have a positive sentiment here and of course a legitimate buy signal”

It will be no surprise to you if I say that Tesla’s price surged and reached the local top around 1200 USD at the beginning of November. Great call, even if I do say so myself! Most recently, the price has been in correction mode and that’s actually why we’re here today.

So far, the correction is a beautiful wedge pattern (blue). On Monday, the price bounced from the lower line of the wedge with a very handsome hammer candle. What’s more, is that we bounced from the 38,2% Fibonacci of the most recent bullish wave. A hammer in place like this is never random and should not be treated as such.

Sentiment is still positive, the proper buy signal will be triggered when the price breaks the upper line of the wedge, which may happen really soon.