Technical analysis by Thecantillonreport about Symbol TSLAX on 1/7/2026

While retail traders chased the breakout to $500, we have been waiting for the "Mean Reversion." Tesla is currently cooling off, but this is not a crash—it is a Liquidity Reset. The Institutional View: Smart money rarely buys parabolic extensions. They wait for price to return to the "Cost Basis." Our volume analysis identifies a critical Structural Floor building around $400 The Setup: We are watching for a "Backtest" of this breakout zone. The Logic: This area was previous resistance in October/November. It is now likely to flip to support as institutions defend their average entry. The Trap: Buying here ($437) is "No Man's Land." The edge lies in patience—waiting for the flush into liquidity. The Plan: Watch: $400 Signal: We are looking for "Passive Absorption" (Volume spiking but price refusing to drop lower) at this level. Invalidation: A daily close below $380 breaks the immediate bullish structure. We don't chase Green Candles. We buy Red Flushes.