Daily bearish divergence but hidden bull divHello lets dive right in
RSI on daily shows a bearish divergence
however on the daily RSI we also have a hidden bull divergence
on the downside we see decreased volume which indicates lack of interest in the stock at current prices.
BUT.
we have structural edge in a cup and handle pattern and we are testing resistance as we speak so if we break out volume will come.
on the bullish side gap is only partially filled from todays trading session which is another bullish signal.
So, i came up with 2 scenerios both of which are based on tomorrows nvidia earnings to carry each trade:
if nvidia reports good earnings and give a solid move on the stock it will move tesla via sp500 correlation and carries the trade to 18%+ move up to ATH.
if bad it will help the bearish side and it is possible we will correct to previous resistance turned support (270 area) what bulls would like to see is a partial gap fill and go so anything on the 273 or 263 is healthy still and a good bullish retest for a local low.
further down we have the 226 the daily 150 moving avg and although it is a good dip to buy from its worse because we then get within the red line and it could prove resistance once more, hurting the integrity of our HS bottom. if it crashes like that, bulls would like to see it rejects hard to the upside with FORCE.
im bullish on tesla in my bias
another point i would like to say is: tesla can move regardless of nvidia and sp500 as it has done before so these will not correlate a 100% but the correlation is a good consideration as price action unfolds tomorrow.
you are all welcome to view my other charts on tesla as i cover them often and have done so accurately.