Shares of Tesla
gapped down and run southwards on Monday morning from what is normally considered a bullish
continuation pattern. Theoretically in technical sense, this tight consolidation throughout the first half of September is what most technicians would consider a bullish pennant
that traditionally resolves itself in the direction of the underlying trend. But in this case, the pattern broke down rather than up!!!
Bulls are still in control here until the moment when price close convincingly below the highlighted region ( trendline
) with follow through.
Though many price action expert says MACD
is a lagging indicator, but it always serve as a great warning to me whenever there is a divergence. As can be seen that price is moving higher but MACD