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12/28/2021 |

Weekly Case Study – TSLA Weekly Chart Anchored VWAP, Trend Zones, Analyst Estimates, Insider Selling

Using a mix of technical indicators as well as non-technical indicators can help market participants get an edge in the markets. In this particular case study, we go over the Tesla weekly chart since September of 2020 to get an idea of how you can use both technical and non-technical tools together to get a stronger edge in the markets.

TSLA Weekly Chart: 

TSLA Weekly Chart: Anchored VWAP, Trend Zones, Analyst Estimates, & Insider Selling

This is a weekly chart of TSLA since September 20th. In this case study, we look at using basic trend zones with anchored VWAP to get a sense of the heavy confluence of potential support and resistance zones. We also look at some of the less technical tools on TrendSpider to get an idea of the sentiment of analysts using the “analyst estimate” tool as well as the “insider trading” tool which was very important to keep an eye on in December 2021 for Tesla.

    1. This number shows the start of the reversal after a big move down in January 2021. This reversal point in May was also right on the trend zone support which acted as an important pivot point on the chart. Whenever you are looking at anchoring a point on the chart, important reversals, gaps, and news events are where you want to anchor from since this is a status quo change in the price of the stock.
    2. This number shows the “handoff” point for the next anchored VWAP which is simply the last weekly candle that tested the original anchored VWAP from the May pivot. Notice how the price rode along this line multiple times as it moved up into September and October.
    3. This number shows a large confluence zone of previous resistance, diagonal support, as well as the “handoff” anchored VWAP from July 2021. Notice how the price bounced right at this area before rebounding hard during the week of December 20th. Whenever you are looking at different levels, you want to find areas like this where there are multiple participants seeing the same thing as to whether they were using diagonal support, horizontal levels, or anchored VWAP handoffs.
    4. This number shows the analyst estimates for Tesla over the last year. As you can see, there are 31 “buy” ratings, 22 “sell” ratings, as well as 8 “hold” ratings over the last year. As you can see, since mid-October, there have been mostly “buy” and “hold” ratings for analysts. This is interesting since Tesla stock was mostly falling during this time as analysts were bullish on the stock.
    5. This number shows the insider trading for Tesla. As you can see, December was a very heavy month for selling stock by not only Elon Musk but other executives as well. Insider selling not only increased bearish sentiment for most of December but also added supply on the market which made it hard for the price to stay up. As Elon Musk finally stopped selling shares during the week of December 20th, notice the price was able to move up hard afterward.

We hope that this case study helps to show how striking a good balance between “clean” charting and a few useful indicators can help you to improve your overall trading performance by providing more insight into price direction and trend than price alone can offer. Why not try out some of these indicators along with the many others available on TrendSpider for 7-days free with this special offer.