My Investing Muse

Technical Analysis of Tesla Stock Note that I recommend a fundamental analysis of any company before we consider using the technicals to guide our entries.  While I am bullish about Tesla's fundamentals, here is my outlook for the coming days. Summary of Tesla as of 21 Aug 2022 From the info, we can establish the following: Tesla looks to be ranging around $900 region in the last few days. Tesla is away from the 52-week low of 620.57 & high of 1243.49. The average trading volume of Tesla was 30.03M 1D Chart of Tesla as of 21Aug22 From the above setup, here are my observations: Stochastic has started a downtrend MACD's downtrend was confirmed by the crossover after Friday (19Aug22).   The volume of Tesla for the last week starting from Monday (15 Aug 22) was 29.79M, 29.38M, 22.92M, 15.83M & 20.42M.  The trading volume of each day was under the average of 30.03M .  This reveals the loss of "strength/momentum of the trend". My 3 EMA lines are starting to me...

Here is some background info on Tesla and the coming earnings: Overview of Tesla for the last 1 year Forecast of Tesla earnings for Q2/2022 with EPS of 1.86 and revenue of 16.52B 1D chart of Tesla dated 19Jul2022 Example of technical analysis that I would use - eg of Tesla $TSLA Using 1D Tesla chart (19jul22).   This is my chain of thoughts using Technical Analysis (using 1D chart as reference).  Stochastic & MACD indicators are both showing an UPTREND.   From the recent death cross in June 2022, the 50MA continues its downtrend.  However, there is a potential for reversal with the MA50 line cutting across the daily candlestick.  This implies that there is a potential for Tesla to enter "bullish" zone of the MA50 (whatever that is above the MA50 line - short to mid duration).   *A death cross happens when a 50MA line cuts a 200MA line from above, usually, a bearish signal.  (MA stands for Moving Average). From my EMA lines setup, Tesla...

Before I start, let us not forget that we will need to qualify the business first through reviews of its fundamentals over a good period of time.  Its recovery from the ongoing pandemic can give us assurance on the quality of the businesses and the durable competitive advantages that it owns.  What I am doing now is the technical setup that helps me to take a position for trade or when a great company reaches a range of "discounted" prices.  This is also known as the margin of safety that value investors add. Personally, I prefer investing over trading that it essentially has a much longer-term time horizon - over 10 years into perpetuity.  Trading requires much more effort & closer monitoring.  The timezone difference does not permit me to trade actively when I live 12 hours away from the US market.  For the coming examples, I am exploring trading and not investing. Coming to trades, we need to consider market sentiment as that can drive the prices in...