- 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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