I have been thinking about this quite a bit and since last year, I’ve been a TSLA bear: purely on the technical front. Of course, I can see how popular Elon and the actual cars are. In fact, where I lived, there are more and more Tesla on the road (a Tesla costs more than US200,000 where I lived). But one thing has to be very clear in the world of trading and finance: the stock performance can be divorced from he actual popularity of the product. At least In the short term.
As a chartist, I look for similarities, price patterns repeating even for different asset classes and timeframes. The reason is because my belief system is that the underlying chart movement is a combination of supply and demand that are driven, at least In a significant part, to herd psychology and liquidity concerns. Meaning whether a stock performs well is affected by many factors outside of the performance of the business itself. So there you have it. I think TSLA is following the path of Gold a few years back and that means it could fall to $300 and below.
As a chartist, I look for similarities, price patterns repeating even for different asset classes and timeframes. The reason is because my belief system is that the underlying chart movement is a combination of supply and demand that are driven, at least In a significant part, to herd psychology and liquidity concerns. Meaning whether a stock performs well is affected by many factors outside of the performance of the business itself. So there you have it. I think TSLA is following the path of Gold a few years back and that means it could fall to $300 and below.
