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They’re cashing out before the storm

  • The index is headed down as expected from charts we drew last month
  • The real question is: do we consolidate at support near ~$340 and begin an accumulation phase or do we capitulate and go lower?
    • My bet is we go lower to $320 barring a black swan event triggered by over-leveraged banks and the increasing amount of debt plaguing the economy

Tesla / $TSLA

  • No one can predict the bottom, but we can identify support levels so you can make your own decisions based on your risk tolerances
  • Support at $126 is significant because we saw price consolidation here in 2020 before moving up
    • This is also datum for the trend line that determined support prices for 2 years
    • From a technical perspective, this is where I would assume $TSLA will bottom and consolidate again before making another major move up or down
  • A breakdown below the $126-range would be very bearish
    • Next support level would be at ~$91

Home Depot / $HD

  • Price consolidation and support identified around ~$263
  • As price has been making lower-lows, RSI levels have been climbing
    • This is extremely bearish
  • The uptrend support from 2019 has broken
  • We can assume price will tag $263 again, but it’s likely price will break this support level if traders think price isn’t oversold enough
    • Meaning, technicals point to plenty of room for downside

Palantir Technologies / $PLTR

  • Price has been moving through a bear channel since ATH in 2021
    • Currently resting on support at ~$6.45 but unlikely it’ll hold here
  • Price is getting squeezed between support and resistance
    • Volatility incoming
  • RSI lows have been moving up while price has been steadily going down
    • This is bearish, at best, which implies price is likely to go down more when RSI hits overbought levels

Target / $TGT

  • Multiple bearish confirmations:
    • The bear pennant broke early
    • Price is testing support for a third time since June
  • A break from support here would put the next consolidation level between $116 and $126
  • Regardless of consumer spending this season, we are almost guaranteed less of it next year with the way wage growth and personal savings rates have been dropping
    • It looks like investors are getting ahead of the recession by selling off now

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