Is TSLA out of the woods already?

 I was quite bullish about TSLA a while ago. Here was what I was thinking and doing back in late Dec as shown from my notes to a friend.

 

 

While TSLA has really a great run lately, is it out of the woods already and starting a new bull run? It’s certainly possible but I’m not so convinced, not yet at least! It’s quite overbought at the moment. So a high chance of a correction soon. I’m also still concerned about its long term trend, which is still far from clear that a major bottom is firmly  formed. Looks like TSLA is hitting its major overhead resistance on the weekly chart. I think the upside from here is quite limited from here but the downside correction can be a lot and severe.

 

For those lucky ones, enjoy the current powerful rebound but be careful about the potential dead cat bounce for a potentially also powerful correction. It’s especially concerning that the overall market is so euphoric and overbought, a swift and painful correction may likely on the way. If so, any high flying stocks including TSLA may come down also hard with it. As a contrarian trader, my advice is as always: be careful when you see euphoria out there.