Tesla Breaks Out Of a 60-Minute Triangle: Will It Go Higher?
Stephen Loke | Nov 29, 2023 01:30AM ET
Yesterday, Tesla (NASDAQ:TSLA) broke out of a 60 min triangle. The triangle is a bullish continuation pattern and this is good for the stock.
The question for traders and investors of this stock right now is whether the stock will have enough momentum to move up in the daily charts as well.
Let's take a look at the 60-minute chart of TSLA and also the daily chart to come to a reasonable conclusion of what it might do.
The chart above is the 60 min chart of TSLA. As you can see, it has broken out of a 60 min triangle. This is bullish.
The stock is also now above its 60 min 20 MA, 50 MA and 200 MA. I like to use these moving averages as a gauge of the stock's trend. What this tells me is the stock is in a good position for a 60 min uptrend.
Since the stock has broken out of the triangle, we should have a bullish bias. But we want to see the stock stay above the apex of the triangle.
As long as TSLA stays above the apex of the triangle, stay bullish. Another way to gauge whether the breakout is good or not is to look at the lower trend line of the triangle. As long as the stock stays above this trend line, then remain bullish in the stock short term.
The chart above shows the daily chart of TSLA.
Yesterday there was a large bullish green bar. This tells us that many people saw the 60 min triangle and bought the breakout.
A very significant thing that is happening to TSLA is the stock is about to breakout of a daily downtrend line.
If TSLA manages to break above this downtrend line, then there is a good possibility that the stock will continue to move higher in the daily time frame.
I hope this analysis has helped you. Follow me for more analysis like this.
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