It was an exciting day yesterday for Tesla (NASDAQ:TSLA) traders and investors. The stock price movement mirrored the major indices that saw wild swings.
The markets plunged lower before recovering and printing candles with extremely lower wicks and wrapped around a volatility trigger on high volume.
This was also the case for Tesla on the daily timeframe, with the stock hit an intraday low of $851.47 before closing well above the open at $930 per share as the buyers stepped back in with the candle closing a positive body and deep lower wick. As such, and given the high volume, we can expect to see Tesla bounce today along with the indices and likely to see the gap of yesterday’s open, closed with a possible return to the $950 per share level and beyond.
This is in line with the reversal that occurred in December, which saw the stock rally at much the same level and returns to the VPOC and beyond at $1070 per share, so perhaps a repeat is in the offing. Naturally, this will be judged on a day-by-day basis, and for any sustained rally, we need to see good volume and strong candles, as was the case in December. So an interesting few days ahead for Tesla fans with an expected bounce now on the horizon, and we do have Tesla reporting 4th Quarter & full year ended December 31, 2021 tomorrow after the bell and the FED.
It should be an interesting day.