My default chart for swing trading is the daily chart, but often it pays to take a step back and look at the weekly. While the weekly chart will not give you a precise entry level, it does signal powerful clues about the stocks trend.
Tesla recently pulled back 100 points from it’s $290 high earlier this year. Now on the weekly chart a hammer candle formation has formed. Hammer candles often signal a trend reversal and is a good timing mechanism for entry on pullbacks or corrections. Price is also holding the 50 day weekly moving average. As long as price can hold these two levels, TSLA is still in a weekly uptrend.
Keep in mind that the hammer to moving average has a range of 35 points. While the weekly gives you a good macro view of the stock, you will need to drill down to the daily chart to time a precise entry point.
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