Nearly 3 weeks ago we wrote about Tesla’s stock (TSLA) that was approaching its best respected moving average support lines on a weekly chart. We wondered whether market participants were waiting there, or preferred gathering further below, around the round $100 marker.
TSLA’s buyers (and short sellers) didn’t even bother. They let the stock slide through and started pushing their ‘buy’ buttons as the stock approached $100. TSLA reached a low of $101.81 before it was bought back all the way up to $114.38:
On a monthly chart, the story is a little different: TSLA opened the new year BELOW its December’s best respected moving average body support line:
This means that the 101-month EMA body support line is now packing and will leave at the end of the month. It’s out.
However, the wick support line, the 92-month SMA (which is calculated excluding the January prices), awaits at $93.69. That is the next line in the sand.
Nevertheless, experienced market participants know that big waves have the power to erase lines made in the sand. We have seen that abundantly in 2022.