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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, $100 next
4 thoughts on “$TSLA Being Alone is not Fun”
Looks like Tesla has a head and shoulders on the 15 minute with possible 20 points downside (to the gap). Trading right at the neckline now. Scary stock though
JungleTrunks i always wonder who buys up here… probably day traders
2kaykim JungleTrunks so true K, but honestly if I were to venture some fun money in a short trade on this then I would only do it as a day trade on a confirmed breakdown. No way I would hold a short in this over night lol. Too much exuberance. At any rate I was enjoying looking back at some of your previous trades and noticed this one while I was considering a short.
Although there wasn’t a breakdown it still feels toppy, like a multiple shouldered H&S, or possibly a descending triangle when looking at the last shoulder on decreasing red volume. Could be a head fake though.
2kaykim JungleTrunks when the H&S didn’t confirm, and on that last shoulder I was thinking it could be a bull pennant, but it didn’t reach high enough, Im not sure of my read on it