TSLA going higher seasonally to next Resistance

TSLA going higher seasonally to next Resistance.    TSLA seasonally goes up for the month of May and June.

Below is an analysis of TSLA with Ichimoku and seasonality combined.    A very powerful combination.

Below is the May seasonal statistics for TSLA from www.alerttrades.com.   It had a 90% probability of moving bullish.    Last year, it moved 9.1% with a drawn down of 4.2%.

2016-06-07_tsla_may

Below is the June seasonal statistics for TSLA from www.alerttrades.com.   It had a 90% probability of moving bullish.    Last year, it moved 6.7% with a drawn down of 2.3%.

 

2016-06-07_tsla_seasonal

 

No matter what people think, seasonality is not the “perfect” solution.   Everything has to be verified with technical analysis.

Below is the weekly chart provided by Thinkorswim From TDAmeritrade.    At the beginning of May, we were not at a support or resistance.   We had broken the support at 233.89 and price was heading towards the next major support of 204.87.

Once price reached the support at 204.87, price held.    There is now high probability of price reaching the major resistance at 233.89.

2016-06-07_tsla

From the May open price to the support, this was a 15% movement down.  Seasonality told us the average movement is around 8% but in 2014, we had a drawn down of 14%.   In that same year, the average profit was 0.3% so price went through the draw down and then recovered with a little positive upside.

Seasonality and technical are verifying there is high probability of price reaching the resistance of 233.89 by the end of the month.

Based on technical, price could reach 240.78 which would put price right back at the opening price of the month.

 

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About the Author Manesh Patel