| Tesla posted unimpressive earnings, and the stock is down over 6% after hours. It's almost $200. When a stock price is near a natural "magnet," it's more likely to be inspected. Stocks that underperform following results seldom recover quickly, if at all. It takes weeks to restart the stock's basic assumptions. The following piece of technical analysis shows how the stock is approaching the VAL (value area low) of the price range's volume profile, which is $191. Despite Elon Musk's frantic or soothing comments, I wouldn't buy TSLA shares till then (you decide). More than TwitterLand, I'd look at Tesla's technical analysis and price chart. Even considering the aforementioned concerns, buying TSLA stock must be gradual and methodical. If smart money thinks TSLA a bargain at $190, the price would build a technical base there within two months, producing four to eight weekly candles, and then bounce higher. I wouldn't spend all my money until validating price activity over two months. According to TSLA's technical analysis video, the stock may be printing a "head and shoulders" pattern, with the neckline near $191. Even though it's unlikely, it might happen. A methodical advance from the ATH with the neckline as the midway may take the stock price to $125, which is 44% less than the price of Tesla shares on the evening of the results release, $222. Check out ForexLive.com's technical analysis for additional information and perspectives. |
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