During the final hour of trading on Friday, TSLA broke its prior corrective low at 206.22 from Thursday, and then proceeded to press still-lower, breaking a much more consequential low at 205.81 from May 25 -- the low from which it had rallied 50% into the broader-market August recovery highs.
Heading into Friday's closing bell, Mike Paulenoff posted a chart alert to MPTrader members about TSLA's precarious technical position, noting:
"TSLA reports earnings on 10/19 after the close... Today's failure to follow through from yesterday's upmove from 206.22 to 226.26 followed by a sharp downside reversal that pressed through BOTH yesterday's low at 206.22 AND the May low at 205.81 is VERY UGLY ACTION and triggered NEW DOWNSIDE PROJECTIONS to 185-188, and if violated, then to 170-175 (see my attached chart) prior to my expectation of the emergence of a sustainable recovery rally effort... The reaction to earnings likely will be a significant directional catalyst for TSLA."
In Friday's aftermarket trading, TSLA traded down to 204.16, last seen back in June 2021, which left TSLA "dangling" beneath a newly-formed 5-month plateau of prior lows that has now morphed into very challenging resistance from 206 to 212.
What's next for TSLA? The resistance level will likely will remain a serious barrier to any sustainable rally effort ahead of Wednesday's post-market earnings report and conference call.
In addition, purely from his pattern and momentum perspective, Mike is now looking for a very significant pivot low in TSLA from 200 down to a potential capitulation spike low into the 170-175 target zone either ahead of or in reaction to Wednesday's event and opportunity risk period.
Join Mike and Mptrader members' intraday discussion group and chart analysis of TSLA, as well as many other individual stocks, ETFs, macro indices, commodities, and Crypto as the markets enter the target-rich Q3 earnings season.
This past Tuesday, September 26, two days prior to NKE (Nike) earnings, Mike Paulenoff posted one of his pre-earnings "Heads Up" to our members, writing:"Certainly, NKE is oversold enough within a relentless downtrend pattern off of its Feb. 2023 recovery high at 131.31, that a positive reaction to quarterly results reflecting anything other than a disaster coupled with dismal guidance, is likely to trigger an initial positive reaction into the 95 to 100 recovery resistance zone.
On Wednesday, September 7, during one of Mike Paulenoff's frequent intraday updates of the E-Mini SP 500 futures contract (symbol ES) to keep MPTrader members informed about dominant near and intermediate-term trend direction in the index and the SPY ETF, Mike posted an important warning:"ES from a BIG Picture perspective shows the weakness off of last Friday's (9/01) rally high at 4547.75 into this AM's low at 4434.75 (-2.5% of the 4.
Back on June 26th, when nearby WTI Oil futures were circling $67/bbl, Mike Paulenoff issued a heads-up to MPTrader members about a potentially opportunistic technical setup developing in OXY (Occidental Petroleum), writing:"OXY pressed to a low at 55.58 this AM, which marginally violated the 5/11 low at 56.16, BUT held above the more technically significant March 2023 low at 55.51 prior to pivoting to the upside into positive territory, now trading at 57.47.
On Monday August 28, we posted a heads-up about FCX (Freeport-McMoRan) to our MPTrader members, writing: FCX (Copper, Gold, Oil) producer has the right technical look (and a positive momentum divergence at Friday's low) of a completed pullback (44.70 to 37.74) within its larger bullish multi-month Coil formation. Last Friday's (8/25/23) low at 37.74 represented a very healthy 15.6% correction off of the 7/31/23 rally peak at 44.70 and also amounted to an exact Fibonacci 62% retracement of the 5/24/23 to 7/31/23 advance from 33.06 to 44.70.
Top Call: NVDADuring the afternoon trading session of August 23, 2023, prior to the release of NVDA's (Nvidia Corp.) highly anticipated quarterly earnings report, we alerted our MPTrader members to our near-term forecast for NVDA, derived from my technical setup work heading into earnings.