‘Dragon pattern’ emerges on Tesla stock chart; Here’s what it means
The post ‘Dragon pattern’ emerges on Tesla stock chart; Here’s what it means appeared on BitcoinEthereumNews.com.
Tesla’s (NASDAQ: TSLA) stock has had a strong performance over the recent period, bolstered by a beat on sales and general Wall Street optimism as the Q2 earnings report is scheduled for July 23 after the markets close. The previous 30 days brought gains of 37.75% to TSLA stock, helping this EV maker finally trade in the green in 2024; the most recent trading session added 5.15%, setting the price at $251.51. However, the Tesla price chart reveals something more: a potential rare Dragon pattern, which last occurred in 2020 before TSLA shares reached an all-time high of $414.5. TSLA stock price chart with a Dragon Pattern. Source: Jimmy TSLA stock price movement has formed a combination of a double bottom while currently trading above its trend line in what is considered a bullish version of the Dragon Pattern. This structure suggests a bullish reversal from the recent downtrend. Key indicators include the Exponential Moving Averages (EMA), with the 50 EMA (blue) and 200 EMA (red) converging, a common precursor to significant price movements. The current price consolidation near the resistance level of $266.52 is crucial. A breakout above this resistance, confirmed with increased trading volume, would validate the dragon pattern, indicating a potential upward trend continuation. For an effective trading strategy, place stop-losses below recent lows around $220 to mitigate risk, and project target prices by measuring the pattern’s height (distance from trough to peak) to estimate the potential upward movement, potentially aiming for levels above $300. What is the Dragon pattern? The Dragon Pattern is a straightforward technical analysis tool that indicates reversal price models and predicts future market trends. It comprises five elements: a head, two feet, a hump between the feet, and a tail. Dragon Pattern characteristics. Source: FXSSI This pattern can signal both bullish and…
Filed under: News - @ July 23, 2024 10:20 am