Before you hit that “Buy” button on Tesla stock because it looks strong, take a deep breath and back away from the keyboard. Today’s supply and demand stock analysis focuses on why Tesla stock is NOT a buy right now, despite a new daily demand zone just being created at $360 per share.
I’ll also walk you through previous weekly demand zones that already played out, and explain why chasing price is a classic swing trader mistake.
Let’s rewind a little and talk about what already happened on the weekly timeframe, because this is where the true story begins.
You probably remember the weekly demand zone at $298. Yes, the one that was stacked beautifully with the monthly demand at $273. That zone gave us a textbook reaction and was the springboard for Tesla’s bullish continuation.
That move played out as expected. Institutional money stepped in. Retail traders… well, they probably got in late. But hey, that’s how it usually goes. Once weekly demand gained control, Tesla blasted through resistance levels that most traders wrongly labelled as “support and resistance”, but we know better. It wasn’t resistance. It was just air between two imbalances.
Fast forward to now. We’ve just seen the creation of a new daily demand imbalance at $360. This was formed after a strong bullish impulse. Lots of momentum, wide candles, clean departure. All signs of institutional participation.
So naturally, most traders will say: “Hey! New demand zone, I should buy now, right?” Nope. That’s the trap. You don’t chase price after it moves away from demand. You wait for it to pull back into it.
Right now, Tesla is trading way above the $360 zone, and there’s no retracement in sight. If you buy now, you’re basically paying full retail.
And as I always say…
“Do you want to buy retail? Or wholesale?”
You don’t go to the market and pay €10 for strawberries when you know they’ll be €4 next week. It’s the same with stocks.
So, why is now not a good time to buy Tesla?
The rule is simple: Buy at demand. Not after demand. Let price come to you. Be the sniper, not the machine gun.
To wrap it up:
Let other traders chase the candles. You? You wait for imbalances to gain control.
Remember — news is noise. Tweets are noise. Even Elon can’t bend the price once the institutional orders are done.
Stay patient. Trust the levels. Forget the noise.