TSLA runs into sellers again around 812.97
Tesla Inc. (TSLA) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
TSLA finished the week 6.95% higher at 800.03 after losing $3.97 (-0.49%) today, underperforming the Nasdaq 100 (0.29%) ahead of tomorrow's Presidents' Day market holiday. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (TSLA as at Feb 14, 2020):
Friday's trading range has been $27.47 (3.49%), that's below the last trading month's daily average range of $50.09. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for TSLA. Prices continued to consolidate within a tight trading range between 735.00 and 819.99 where it has been caught now for the whole last trading week.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar.
Prices are trading close to the key technical resistance level at 819.99 (R1). After having been unable to move above 818.00 in the previous session, the stock ran into sellers again around the same price level today, failing to move higher than 812.97. The last time this happened on Wednesday, TSLA actually gained 4.78% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could speed up should prices move above the close-by swing high at 818.00 where further buy stops might get activated.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. Although it is usually interpreted as neutral, it has actually shown to be bullish for Tesla. Out of 703 times, TSLA closed higher 53.63% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 55.90% with an average market move of 1.60%.