I’ve been watching the TSLAX 1-hour chart closely, and what immediately caught my attention wasn't the bounce off the lows—it was the sheer violence of the sell-off preceding it. We saw a brutal cascade from the local high of 392.13 all the way down to 336.00, representing an 8.10% slide.
When a chart prints massive red candles like that, it's rarely a random event; it's a forced flush. The long lower wicks on the subsequent green candles tell me buyers stepped in aggressively to absorb the panic. Currently trading around 347.82, the price has stabilized and reclaimed the short-term moving averages (MA7 at 346.75 and EMA7 at 347.25).
However, here is the critical nuance: we are still trading below the mid-term and long-term averages. The MA28 sits heavy at 359.18, and the EMA28 is at 356.93. This means while the immediate bounce is impressive, the broader bearish structure hasn't been invalidated yet.
This is where beginners get trapped. They see a 10-point bounce off the bottom and assume the trend has flipped, buying into what is essentially dynamic resistance. Professionals understand that after a capitulation candle of that magnitude, the market usually needs time to consolidate and build a base.
I'm not chasing this bounce. I'd rather wait for one of two scenarios: either a pullback to the 336.00 support zone to form a higher low, or a confirmed 1H close above the 359.00 resistance level to prove the bears have truly lost control.
Right now, the risk-to-reward for a long entry in the middle of this range is poor. I'll let the market show its hand before committing capital.
Do you see this as a genuine trend reversal, or just a dead-cat bounce before another leg down?
$TSLA #BinanceReopensWithdrawalsForMoreAssets
When a chart prints massive red candles like that, it's rarely a random event; it's a forced flush. The long lower wicks on the subsequent green candles tell me buyers stepped in aggressively to absorb the panic. Currently trading around 347.82, the price has stabilized and reclaimed the short-term moving averages (MA7 at 346.75 and EMA7 at 347.25).
However, here is the critical nuance: we are still trading below the mid-term and long-term averages. The MA28 sits heavy at 359.18, and the EMA28 is at 356.93. This means while the immediate bounce is impressive, the broader bearish structure hasn't been invalidated yet.
This is where beginners get trapped. They see a 10-point bounce off the bottom and assume the trend has flipped, buying into what is essentially dynamic resistance. Professionals understand that after a capitulation candle of that magnitude, the market usually needs time to consolidate and build a base.
I'm not chasing this bounce. I'd rather wait for one of two scenarios: either a pullback to the 336.00 support zone to form a higher low, or a confirmed 1H close above the 359.00 resistance level to prove the bears have truly lost control.
Right now, the risk-to-reward for a long entry in the middle of this range is poor. I'll let the market show its hand before committing capital.
Do you see this as a genuine trend reversal, or just a dead-cat bounce before another leg down?
$TSLA #BinanceReopensWithdrawalsForMoreAssets