Tesla's poor earnings this week have accelerated the recent bearish sentiment in the stock, & after such an event, it's often useful to look at the slower timeframes to see if this is merely a blip from which the stock can recover or if it is indeed the start of a major reversal.
This is where the VPA concepts of support and resistance come into play along with the Quantum accumulation & distribution indicator. Considering the monthly chart, Tesla bulls do appear to have some respite ahead as the price action is poised on relatively strong support at the $177 level. What's even more encouraging is we also have the support on the weekly chart.
What will also determine whether Tesla continues lower is the volume, which so far for January is light considering the spread of the candle. However, we do have to reserve judgment until month end.
By Anna Coulling
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Despite a laundry list of risk factors that include inflation and geopolitical events, retail investors have been pouring their money into US stocks, and in particular stocks such as Tesla, which alone attracted almost $10bn since the beginning of this year. We can see this level of volume on the weekly chart for the stock, along with the levels Tesla has to overcome if the price is to continue higher. In such circumstances, using volume price analysis will help to determine whether this retail cohort will be left stranded at the current level or whether it is indeed the start of a major reversal for the stock. The Quantum indicators that come into their own in these circumstances are a combination of the volume point of control and the accumulation and distribution indicator, where key levels are not only clearly marked on the chart, but the lines also thicken each time the level is tested, giving us a visual of...
Our volume point of control (vpoc) takes the analysis of price action and volume to another level and which also complements the volume price analysis methodology. In this video, David explains how the alerts work on the version for Tradingview.
https://youtu.be/QJ3x8LfuKns...
Support and resistance are integral to technical analysis and also a key plank in the volume price analysis. methodology. It, therefore, makes sense to use the best tools possible to highlight those areas and levels on a chart where the price action is going and perhaps stall. At Quantumtrading, we have developed price and volume-based tools to help traders and investors make sense of the price action, and we have a great example on old where the accumulation and distribution indicator, the volume point of control, and Camarilla pivot levels have all come together on the weekly chart.
The precious metal has recently found its mojo once again, lifting off a triple bottom at the $1632 region. It also coincides with the volume support and achieved the $1812 level, where it now faces its first major price resistance level in the form of the accumulation and distribution indicator. We can see this given the thickness of the blue hatched line. The...
An update on the monthly chart for the XLE energy EFT as the sector appears to fall out of favor with the monthly chart looking to post a bearish engulfing candle. However, we were already aware the price action in the XLE was likely to come to a pause and probable reversal with the failure to take out the volume band of the volume point of control (vpoc). As one of our most powerful indicators, the vpoc not only gives us the structure of the chart in terms of whether the price action is in trend or congestion but also gives us key volume-based support & resistance levels and zones. In addition, last month's candle also triggered our volatility indicator so a retrace into the spread of the candle was highly likely, particularly when accompanied by low volume. The vpoc itself (yellow hatched line) marks the area on the chart which could be described as being 'fair value' where traders...
The recent price action on PLUG Power is a great example of how the volume point of control along with volume can help to validate a breakaway trade. On this occasion, it resulted in a nice waterfall lower. We now have a nice reversal on the chart with upside levels clearly marked by the Camarilla indicator as Plug attempts to regain the vpoc.
By Anna Coulling
Disclaimer: This analysis is for educational purposes only. It is not a buy or sell recommendation.
Charts courtesy of Ninjatrader...
A look at key levels on the SPY (ETF for the S&P500) as we move towards month-end to see if buyers will be stepping in as they have done each month since January. In addition, we also explain how the index is heavily influenced by the technology sector in a week when major players in this sector are reporting.
https://youtu.be/oibO3UDkqnI...
SPY has recently regained its bullish momentum and is over the volume point of control on the weekly chart. However, the volume does appear somewhat light as it tries to regain its all-time high. This week's close is key.
https://www.youtube.com/watch?v=8v7LO7hNGlY&ab_channel=QuantumTradingIndicators
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In this video, we see how Apple has progressed through some still price-based resistance and the volume point of control on the daily chart. It also reveals the price objective for the stock in the current trend higher.
https://www.youtube.com/watch?v=cYt_vxzjbG8&ab_channel=QuantumTradingIndicators...
https://www.youtube.com/watch?v=b95ssPUkTHY
Support & resistance is a key element of classic technical analysis and one of the five pillars of volume price analysis. And when combined with support & resistance from both a price and volume based perspective will give traders and investors additional confidence in identifying whether a trend is likely to reverse or not....
