TSLA Intraday Ranges, Downward Pause, Low Market Volume on Fri, Jan 5, 2023

Backdrop

Surprisingly strong employment numbers. EV tax credits future skepticism. Car margins shrinking. Market down days might need a break.

Daily Chart

Flat day with slight upward bias after 5 prior downward days.

3-Minute Chart

4 good swings followed by flat close. Consolidating price stayed within the night range, with low daily range at 63% of ATR. VWAP chop. Slight upward bias.

Open was rangy. Eventually a big green bar happened. Direction turned in the first 2 hours. Price retraced almost to lows. New high unlikely, and indeed didn’t happen. Turned out to be a rangy day. By end of day, the price was done with big moves.

Strategy

Play the night range. Night zone is a magnet on low range days. Wait for confirmation patterns following RSI extremes. Stop on strength outside of night range. Maybe don’t short a slow market.

Happy trading.

(This post is for entertainment purposes and is not investment advice. You can lose money in the stock market.)