Tesla Analysis with Wyckoff Method

1-27-2022:

As I mentioned in yesterday analysis, TSLA is trading range with distribution bias or characteristics, today the price action confirmed it. Price pierced through 890 demand line. Good effort (volume) resulted in good result (high spread bar), both price and volume are in sync. 

Based on Point and Figure chart, this whole distribution range from UT to BC has a cause, which leads to price reaching 670 levels and maximum 550. 

If you are long on Tesla, take appropriate measures, either buy puts or trimming it down. 

1-26-2022:

This is going to be my first analysis on TSLA. Obviously TSLA had great run and now its in consolidation/trading range, now my goal is to use these clues and make smart decision whether stock is going up or  down in medium term and profit from the moves in either case. It made higher high in Nov at 1243 and made higher low in Dec at 890 and touched 850 intraday on 24-Jan-2022 . Attempted to up in Dec-2021 but failed short at 1200 price level where it encountered huge resistance but found support again at 980 and finally broke 980. So from daily levels 1200 resistance level and 980 and 890 support levels are very crucial, watch the price carefully when stock around this level.

Relaying Tesla chart with Wyckoff distribution schematics will help in deducing some clues (remember Distribution and Re-accumulation schematics looks almost same until end of Phase B and start of Phase C). Even though I mentioned Tesla is in trading range in the start of this article, the reason for having some bias towards distribution is what's happening in 2022. Lets say if Tesla is trading range and bias is towards accumulation (re-accumulation), we should not be seeing these high spread bars at the end of phase B, even though daily bar on 24-Jan can be considered as spring. So the question is whole price pattern from 2022 starting to till is Sign of Weakness (SOW), if that's the case then Phase B are already ended with Bar on 3rd-Jan. Also another clue that is suggesting this is distribution is volume during 2022 move, its higher than for the same price from 1-Dec-2021 to 26-Dec-2021, if this is accumulation volume should be low and price spreads for downward movement should be lower, but that's not the case. So I am having bearish bias on  Tesla until it disconfirms this and re-test spring with lower volume and then moves higher with good spreads. Tesla can encounter resistance at 980 to 1000 region.

Planning to walkthrough Tesla chart with Wyckoff method going forward. Will provide updates only if interesting and worth mentioning happens in the chart.