Actions speak louder than words. We can say whatever we want but it is what we do that matters. When we looked at TSLA the other day it showed a pattern that seemed to conflict with all of the context. After a quick dip, we saw a bearish crossover in the MACD. Take a look:
It looked like a false signal at first with a quick recovery, but the MACD never really became bullish. Now we get news that margins are not what the market was looking for and it is ready for a bigger pullback.
Indicators are interesting like that. Back on the 22nd, someone had an idea of what was going on. Forget about the headlines and what is making it to the press, someone was selling TSLA hard to cause that dip. It doesn’t have to be cloak and dagger inside trading stuff. It could be a big Wall Street firm with a massive computer figuring out there was a problem on the horizon. It may have even been coincidental profit taking that created the dip. Whatever it was, the action was selling. And today we should be ready for some more.
Keep in mind, many investors have rose colored glasses when it comes to TSLA so we may see some people looking for a bargain, but it is most likely this is an inflated stock taking a breath.
Keep learning and trade wisely,
Market Wealth Daily