Transcription
Now everybody, I'm Cantonese Cat.
[singing] Hey everybody, Cantonese Cat here. This is Tesla on Tesla's daily chart here. What do we see? Well, the yellow candle here is still active. Price has ended up going down. Since you have a bearish yellow candle underneath the ribbon here, underneath these volume shelf support zones over here, and decided to go down to the 380s, 390s range, and that's where we've been hanging out for the entire week doing absolutely nothing.
We [snorts] on the daily chart are leaning more bearish here because we are underneath the point and control volume shelf, underneath the ribbon, underneath all these momentum bars. And the thing that is positive about it, even though the yellow candle is still in place, is that the Welsh momentum seem to be somewhat still stabilizing around 50%. You also are starting to see a little bit of a red light over here. Although it did end up getting rejected here at the blue ribbon, you do end up seeing a little bit of signs over here. Hey, maybe the bearish momentum here is starting to slow down here because you're starting to see a little bit of red light here. But it would be nice to really confirm that the stabilization of Wish momentum is really truly in place because it's still underneath resistance here, which opens up the possibility for the go down. Sure. But with that said, it looks like it wants to stabilize here. So, let's just give it some time and see what it wants to do on the weekly here.
Last week, you ended up developing a yellow candle with a volatility black hole. The upper part of the black hole here is 500. The lower part of the black hole here is 357. If it goes above that, then it becomes a lot more volatile to the upside. If it goes below that, it goes a lot more volatility to the downside. Means that you're breaking down underneath the ribbon, kind of like what happened over here. Then you have a lot more volatility here to the downside. A lot of people are worried about round tripping, kind of like how they did over here from the 400s gone down all the way back down to the 200s. A lot of people are worried about that possibility. I think that that possibility is less likely.
With that said, I do think that we have to pay attention in terms of what the potential levels are. If the bottom of the ribbon here is around 350s, that's also going to serve as some pretty decent support here too, right? With that said, we are starting to lose a little bit of momentum here. So, we will have to see what happens. I want to say based on looking at my charts, this is still a bullish formation because this looks like a cup and this looks like a handle that is forming. The handle is looking like it wants to enter a buy order block soon or at least touch it to get some buy orders in. The move on the way up here has left a couple of gaps. This gap here is the most noticeable. Whenever it leaves about three gaps on the way up, usually, you know, one of those end up getting closed and we end up closing up, you know, at least one of them maybe down here is possible. There's no guarantee because you have support here.
If you're also looking at the FIB levels from the top here to the bottom here from the beginning of 2025, you can also see that it has retraced to the 0.707. Sometimes retracing to 0.618 where it was a previous resistance zone over here would be a logical thing to do. Looks like there are buy order blocks in some support levels here that's preventing it from doing that. So there's no guarantee that has to hit 350s. I think 380s was a perfectly fine buy zone. If you want to add with the understanding that it could go down 10% and hit 350s and that would be even a better buy zone. You can say, well, what about 323? That would be even better buy zone, right? Well, so far there's no proof that that wants to do that. So, I wouldn't necessarily be that cowboy about calling lower levels one level at a time, but never go all in. Right? The reason why I'm in profit right now is because I bought on the way down.
But anyway, we are holding the 0.618 linear fib here. Now, if that's the case, if this is the true um you know, it hits the 0.707 log fib, which also happens to be around 0.618 linear fib. That's confluence, right? That also happens to be on top of buy order block. That also happens to be right after you close the gap. This is a pretty important support zone, right? Even the daily Ichimoku cloud is serving as support right now. That's a pretty important um you know, confluent support zone, right? You basically broke out of the cloud and you back tested it. That's not a bearish thing.
On the weekly, you don't see those gaps because there is no weekly gaps over here. The weekly gap that was glaring has been closed from last week and also again it was basically getting back to the zone this week. There are no further weekly gaps down below. Not all daily gaps have to be closed. As far as I'm concerned, it also is finding a confluence zone of support at the bull market support band, which is the 20we SMA and the 21week EMA. It is finding a confluence of support.
Looking at the two week chart here, you have something called the Ishimoku Tenken, which is this blue line here. Initially, we end up plummeling down below. But the the fact is this right this cloud this twoe cloud here was support here broke underneath and serve as resistance here for two years right resistance resistance resistance resistance resistance resistance resistance resistance right we finally broke above it we have not had a back test until April right or you know February March whatever we have found support over there so guess what we bounced above we broke through this confluent zone of rangeboundness over here. We broke above and we're back testing an important level, right? Can it back test further down to the red level here too around 350 is possible, but we are basically flipping resistance into support and is riding up the tank and riding up the blue line. So, there's no guarantee you have to go back down further, right? There is just not any guarantee.
With that said, a lot of people are eyeing 350s and I think it's okay to save some funds. If you want to buy Tesla at 350s, I think it's fine. Um, there's just not ever, you know, any guarantee here. It probably would continue to be rangebound until we truly get the impulse on the way up with bullish expansion. Right now, we have a low bungee band contraction. So, we don't really quite have that movement and that volatility where Palanteer had and where, you know, Tesla had during his previous cycle because the global engine is still contracting. We we just don't quite have that.
Now, I'm also going to show you if we're able to find support around 380 is great. If not, 353 is going to be a strong support zone, right? Cuz even on a higher level, it's a 0.886. That's a very important support cell. Um, I would say that, you know, if if it gets there, if we we're lucky to have it, that would be that would be a great opportunity. If it ends up not getting there, then we are going higher to some of these higher targets above higher highs, higher lows. This is what makes a bull market, right? Tesla closed a gap below in 380s and is holding the support zones and so far showing relative strength through all these volatility in the market. That's not a bad thing. 3 350s is always possible and would be another area to consider adding or starting a position.
Now, I hope some took advantage of 380s drop and added to their position if they wanted to. I don't want to because I already have a position. It's my third biggest position. I'm just going to let it be. Once we find support and done with the current consolidation, either 380s or 350s, which I think is less likely, I do think we're going to 600 next.
All right, guys. Thanks so much for listening. Have a good one.