in my previous stock-trading article I was talking about Tesla and the most important long-term Supports there.
It has been almost a month since I wrote that article, and there has been some quite turbulent development since!
From $400 per stock, Tesla skyrocketed to $550. And that’s just within a few days!
This new and crazy up move gave us one very important information. It is that the triangular rotation in which the price moved since September has actually been a volume accumulation area.
Volume Profile analysis What I expect happened there, was that Buyers were building up their Long positions in this rotation. When they finished, they pushed the price into a new strong uptrend.
It tells us that there were strong Buyers around 425.00 (this is Point of Control of the rotation area). Those Buyers will want to defend their Longs when there is a pullback to this POC at some point in the future.
This would make the 425.00 a very strong long-term Support.
When the price hits this Support at some point in the future I expect that the Buyers will try and push the price upwards from there again.
Don’t get me wrong. I am not saying that TSLA is going to drop to 425.00! I am saying that IF it does, then there is a solid chance it will bounce off this level.
That’s it! I hope you guys liked today’s analysis. Let me know what you think in the comments below!
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