Everyone must be vaping marijuana at Tesla. 420 appears to be an important price level that is defended for the last half-year. Is Elon Musk playing a trick on everyone? Who else can always buy the dip in the TSLA stock when it hits 420?
Why 420? Because it is 'cannabis culture slang' that means 'smoking marijuana'. There is a big cultural celebration each year on April 20th, 4/20, only a couple months away. Also, pot smokers will typically party with others at 4:20 PM in the afternoon getting high before dinner, or after dinner, or skipping dinner and staying on a liquid diet (alcohol) with pot. Musk was smoking dope with Joe Rogan a couple years ago so that is no secret.
It is a cute fun game for a multi-billionaire to play but playing with sticks is fun until someone gets an eye poked out. What happens when Elon Musk decides to no longer support TSLA stock at 420? He could load up on shorts and then stop supporting the price at 420, allowing it to drop, and walk away with millions. It is par for the course in the crony capitalism system.
The chart has a head and shoulders (H&S) vibe to it. The head at 490 and neckline at 420 is 70 difference so if the neck fails at 420, the lower target is 350. The purple H&S is interesting with a 387 neckline. The head at 490 and neck at 387 is a 103 point difference so if the 387 fails, the downside target is 284.
The 150-day MA at 406 is interesting since this moving average helps identify a bull versus bear market for individual tickers and indexes. Price was supported at the 150 but now comes down for another look. A stock or index falls into a bear market when the 150 flattens and rolls over to the downside. The 150 is clearly still moving higher so the bull market is safe, for now, but the advance is weakening. The 150 can only flatten and rollover if price falls beneath it, so watch that 406 level closely since real trouble begins for Tesla when it fails. TSLA is only 11 bucks away at 417.
The brown circles show some gaps that will need filled eventually. The chart indicators show how price was boosted off the 150-day MA support. All were possie d except for the RSI and MACD that are agreeable to renewed sogginess in price that occurs. The daily chart is very much in a sideways muddle. And why wouldn't it be? If every time it wanted to rollover and die, it is instead supported by Elon Musk's 420 hand, it would create the sideways chart above. That is not healthy since Musk's not-so-invisible hand cannot support the stock forever. Note how volume has fallen steadily over the last half year further reinforcing the idea that one man, or a handful of entities, are supporting the stock at the 420 pot number. The truth is always in the numbers and charts.
The daily chart is not telling much since it is in the sideways muddle, but the weekly chart remains weak. If the weakness on the weekly chart continues, Musk may give up on the 420 pot support number and let it go? Maybe the idea is to create a triple merger of SpaceX, xAI and Tesla? The chart above, and the stock market, may fall down the rabbit hole before any of that comes to fruition.
So watch the 420 pot number to see if Musk continues to defend it, or not. Keystone is not playing TSLA long or short these days. Smoke 'em if you got 'em. Tesla workers are smoking bowls at lunchtime in honor of the 420 price level. Hopefully, the cars are put together correctly. In the United States' crony capitalism society, where 30 million so-called Americans screwed the other 300 million over the last five decades gutting the middle class, there is only one thing left to do. It is time to Lay Around the Shanty, Momma, and put a good buzz on. Take it away Jonathan. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.