Today, we’re taking a look at the NASDAQ, the XLY Consumer Discretionary ETF, and Tesla. With Tesla’s investor day tomorrow, let’s see if we can get a setup in these three related markets. We’ll be taking a look at the one-hour and daily time frames of Tesla, and the two buy zones that could be used for a potential buy.

Tesla
Tesla has a one-hour bullish bias that has recently gone neutral on the multi-trend. This is indicated by the yellow color, meaning we have a bullish overall expectation. We can use the slow stochastic or slow still to find when we reach this low area and possibly this Darvis area here for a potential buy.

Another buy zone is the DPMR here on Tesla for potential support. I don’t have a bearish bias because the structure on Tesla has been up on the daily since the first week of February. This means that the path of least resistance is higher.

The 200 propulsion here is also important. If we can finally take out the 200 propulsion on the daily time frame, that’s the difference between being in the bullish versus bearish hemisphere.

XLY
The XLY Consumer Discretionary ETF is heavily weighted in Tesla. I’m much more interested in what Tesla could bring us in terms of structure. As long as XLY stays supported, that would be helpful.

NASDAQ
When it comes to the NASDAQ, we want to keep an eye on support. Right now, we’re in chop, but the trend that preceded the chop was up. The slow Stow is down here near the low, which is what we’re looking for. When the multi-trend is yellow, we want to use things like a slow still to find overbought and oversold levels.

We’re looking for a lower low, and for support to be a buyer of the NASDAQ. This could include the QQQ calls or the MNQ micro. We’re looking to get long, and all of these are aligned in the same direction.

Conclusion
We’re expecting volatility with Tesla’s investor day tomorrow, and we’re looking to get long. The levels might be a little bit different, but the directional bias should remain to the long side.

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