The bulls finally took control this week.
We saw the S&P 500 (SPY) rally into its daily 21 exponential moving average (EMA) at $390. We also saw heavily-weighted names like AMZN, GOOGL, and TSLA begin to rebuild the structure of their charts. This points toward the potential for more upside.
As far as the TSLA setup goes, this is one of our favorite picks for a rip into higher prices next week. TSLA was one of the first setups where the Big 3 bars went neutral across all time frames. This is an indication that the selling pressure is coming to an end.
At the close on Friday, TSLA traded above the daily 21 EMA with squeezes on the daily, 4-hour, and 15-minute time frames. In addition to these squeezes, TSLA also has green Big 3 bars (our buy signal) on the 30-minute and 15-minute charts.
Keep in mind, individual stocks will move with the market.
In the event SPY fails to trade above $390, it’s unlikely stocks like TSLA will trade higher.
However, if the bulls can run the market higher, we’re looking for leadership in the setups printing our buy signals.
Our target for TSLA is a push into $790 to $800. We’ll be covering a more of the setups on our watch list in the Sunday newsletter video.
Stay Focused!