Good Morning folks.
SPY , as we mentioned yesterday, is heading into the cloud after reaching 338 yesterday. As discussed, it did not touch the base line and is headed into the cloud in premarket. As shown in the Gann square of nine table, it also reached 90 degrees which is also a sign of retracement. News wise, market is going down as POTUS is affected with Covid. It is amazing how charts factor these and provided us signs yesterday. Any way, the next support for SPY could be at conversion which is at 329.27. My gut feel is that it could go below 319.80 ( the point from where it started in the cloud)
TSLA gave Delivery news for Q3 and the number is 139300 I believe. However, TSLA is going down in the premarket and is hovering around 430 area. Lets see where TSLA is heading technically.
TSLA, yesterday in regular hours, closed above 441 and provided us an opportunity to enter the trade. Below is the table for gann square of nine angle
As shown in the chart, TSLA started its ascent on sep 24, 2020 from 351.30
If you look at the Gann Square of Nine, TSLA has completed a rotation and crossed 440.3 yesterday. As I have underlined, next stop for TSLA could be 473.3 very soon passing through 451.3 ( some pull back may be there). I expect this to happen by early next week. And if the market is bullish, we may see TSLA going above 500 to 528.3- 540.3 area. Why do I think ?
On TSLA daily chart with Fib retracement drawn from recent all time high to the corresponding swing low, the retracement is at 25%. Whenever, the retracement is at 25%, there is. a good possibility that it can go to 112.5% area which is around 530.
Today might be a good field day for shorts and puts. So, play wisely and protect your capital.
Wish you a profitable trading day !!!!