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12.19.13 Thursday
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Daily Chart
Here are the problems
- $TSLA is not participating with this recent market strength and have been selling off every chance it gets
- Despite of last few days bullish strength in the market, $TSLA sold off
- 100SMA which acted as strong support back in march forming double bottom (see green arrows) is now acting as strong resistance (see red arrow)
- Recently formed and confirmed inverted H&S bullish reversal pattern with well defined neckline to hold, it was not able to hold above this neckline and cracked below and closed below that level today
- Stock is back below 10, 20, 50EMAs and selling volume is increasing
What Next
- Bullish market with inv. H&S confirmation does not do the job, it’s best to stay away
- You could trying to short this but I personally don’t like shorting any stocks while the market is in bullish sentiment
- If this continues, possibly 200SMA is where it’s headed
Support Levels
- $132ish
- Gap fill at $126.39ish
- $120 <— this is also where 200SMA is residing
- If break below $120, $100 next
