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...

Technical Analysis Exercise (12Apr2022) This is looking at charts based on technical analysis of their 1D chart.  It is strongly recommended to conduct fundamental analysis before we conduct any technical analysis . Abbreviation  (based on 1D chart) MA = Moving Average MA50 = Moving Average 50 days (short term trend) MA200 = Moving Average 200 days (longer-term trend) Being prudent, I will give preference MACD indicator for the following logic:  I will rather be late than too early.  I may get lesser profits but I could (potentially) avoid a bigger loss (entering too early and catching a falling knife).   One of the factors influencing my decision will be the Beta of the stock (above 1 being more volatile).  If the stock is more volatile, I may consider leaning more on stochastic than MACD.  As per my previous article, MACD is giving a much more reliable signal than Stochastic . PLTR 1D chart as of 12Apr22 2320hrs Avg. Volume is 52,748,511 ...