Monthly Archives: May 2016

Fibonacci Retracements Driving Tesla Shares

Tesla (TSLA) has been attempting to hold above the intersection of the 50% Fibonacci retracement level of its 2016 range and the downtrend line drawn off its 2015 highs. Resistance is being supplied by the 38% retracement level and the converging 50 day moving average. Shares attempted to breakout in today’s session but were soundly rebuffed, closing at the lower end of their daily range. The well-defined boundaries of the zone suggest that a confirmed breakout or a breakdown will determine the intermediate term direction of the stock price.


SPY – Compression on the Intraday Charts Suggest a Volatile Move Ahead

The market traded in a narrow range all day continuing a pattern that began in the last half of Friday’s session. The thirty minute chart shows the contracting ribbon of Bollinger bands and the Bollinger bandwidth indicator at the bottom of the chart, which is at a level not seen since late April and which was followed by a volatile two days.

1000133.Bollinger bandwidth 30

1000133.Bollinger bandwidth 10

The ten minute chart highlights the channel pattern the SPY has been moving in and a break above or below the boundaries could be followed by another several days of volatile action.