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Competition Eliminates Complacency | $TSLA and $SPX | 8/4 Key Levels


TSLA

When I first look at TSLA, the first thing I notice is the ascending triangle that has formed on the 30 min timeframe.

Even when you get into a tighter timeframe like the 5 in, it is still pretty apparent.

If this were in a textbook, the way the pattern plays out is that TSLA should make a move up on August 4th. At least taking a little bit of a move outside of this consolidation area that has been going on the past few days.


Biggest Thing that I have noticed is how strong this 923 level has been for TSLA. The resistance and the bears have not allowed the bulls to get over that level for the past three days.

The last two days have been rising price, but lowering volume. TSLA is sitting at VWAP right now and to be honest, not sure what we are going to see next. If we break that 923 level, we could rocket, if not then we are going to be below 900's.


Either way I expect a big move after this consolidation ends.


Bull zone: 930-933

Target 1: 937

Target 2: 945

Target 3: 949


Bear zone: 916-913

Target 1: 909

Target 2: 901

Target 3: 897


SPX

The bulls took over finally and got SPX over the 4140 level that has been a major point of resistance this entire week. That level got rejected 6 times over the last few days.


On the flip side of it though, the bulls held onto that 4082 level which was a major level of support in May and early August.


Even though the bulls got through that initial 4140 hurdle, they have another key level right above that at 4164. This has been a HUGE level of support and resistance. Support in February and March and resistance in May and June. At the end of Wednesday, it got rejected hard off that level going into close.


Part of me thinks that SPX is going to be in the 4200s by the end of the week, but there are also factors that indicate the other way. There is MACD divergence, and where there is a new high, but not a new high on the MACD, that can sometimes mean that there is instability and room for a reversal.


You can see that on the chart below on the light blue trend lines.


Bull zone: 4171-4179

Target 1: 4188

Target 2: 4207

Target 3: 4215


Bear zone: 4138-4130

Target 1: 4122

Target 2: 4103

Target 3: 4094

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