This is a purely mechanical system that gives specific "time" and "price" projections based on simple accumulation and distribution rules of logic.
The top was called by these same principles and TSLA has operated very well with these technical principles since it began its trending pattern last year.
Tesla is finding it harder and harder to stay afloat up here as sellers are keeping a lid on price and now time has built "lower" by spending more time around the 237 level than it did at the 251 level where it spent 7 days.
The way for TSLA to recover and prove that it is ACCUMULATING and not distributing is for it to climb back on top of the level marked with a "10" at the 237 level. Once it can spend an entire session above 237, then it will be back in a strong position to make further upside progress. For now, TSLA shares are having a tough time as sellers and perhaps SHORT sellers are having another attempt at re-establishing their positions.
Again, today may be day "1" of a 10-day decline. Stay on the sidelines if you are a buyer or unless TSLA can climb back above 237 and stay above 237 for an entire session. The green, long term rising "speed lines" hopefully will give us another entry level to get long TSLA again.
In the meantime, happy shorting. Use the blue box for reference in both time and price.
Tim 10:50AM EST 3/21/2014 230.53 last TSLA
Комментарии
AYosof
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Hi Tim,
What bottom do you think we should position for long?
timwest
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Now that it is down to the green area, I am considering a long by way of selling puts. I'll put in for 1/2 of my position around this level and half down at the lower target level. There has been some very bearish news come out over the weekend (news for me) about poor performance of Tesla vehicles by a ratings agency and that may hurt (if it is true) the reliability rankings of TSLA. Although it may be the safest car out there, I don't like to hear that the Tesla is an unreliable car with many breakdowns. So, I am only reporting what I have read and I can't confirm these points as fact, but only evidence presented at news sites that I read. Thanks for asking AYosof. I'm looking at selling 220 strike put options going out 6-9 months.
ChrisMoody
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Tim...just out of curiosity...the numerical system you are showing...Is that a Demark method?
timwest
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Hi Chris - It is not DeMark. This is my own methodology.
What bottom do you think we should position for long?