Tesla rallied more than 50 percent from its lows of the year through earlier this week. But now it may be running out of juice.
The main pattern on today’s chart is the price area around $939. It was the opening price on May 5 before TSLA knifed under its 200-day simple moving average (SMA) and proceeded toward $600. Price touched that level on August 4 without closing above it. The same thing happened on Tuesday, resulting in a potential double-top at a previous breakdown level.
Next, there’s confluence with the 200-day SMA. Will that also become resistance?
Third, Fibonacci: The price area closely matches the 50 percent retracement of TSLA’s drop between November and May.
Fourth, the nine-day rate of change has slipped into negative territory. Other times that happened, like early January and mid-April, were followed by pushes to the downside.
Finally, MACD is flattening after rising for more than two months.
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This content is for informational and educational purposes only. This is not a recommendation regarding any investment or investment strategy. Any opinions expressed herein are those of the author and do not represent the views or opinions of TradeStation or any of its affiliates.
Investing involves risks. Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options, futures, or digital assets); therefore, you should not invest or risk money that you cannot afford to lose. Before trading any asset class, first read the relevant risk disclosure statements on the Important Documents page, found here: www.tradestation.com/important-information.
The main pattern on today’s chart is the price area around $939. It was the opening price on May 5 before TSLA knifed under its 200-day simple moving average (SMA) and proceeded toward $600. Price touched that level on August 4 without closing above it. The same thing happened on Tuesday, resulting in a potential double-top at a previous breakdown level.
Next, there’s confluence with the 200-day SMA. Will that also become resistance?
Third, Fibonacci: The price area closely matches the 50 percent retracement of TSLA’s drop between November and May.
Fourth, the nine-day rate of change has slipped into negative territory. Other times that happened, like early January and mid-April, were followed by pushes to the downside.
Finally, MACD is flattening after rising for more than two months.
TradeStation has, for decades, advanced the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
Important Information
TradeStation Securities, Inc., TradeStation Crypto, Inc., and TradeStation Technologies, Inc. are each wholly owned subsidiaries of TradeStation Group, Inc., all operating, and providing products and services, under the TradeStation brand and trademark. You Can Trade, Inc. is also a wholly owned subsidiary of TradeStation Group, Inc., operating under its own brand and trademarks. TradeStation Crypto, Inc. offers to self-directed investors and traders cryptocurrency brokerage services. It is neither licensed with the SEC or the CFTC nor is it a Member of NFA. When applying for, or purchasing, accounts, subscriptions, products, and services, it is important that you know which company you will be dealing with. Please click here for further important information explaining what this means.
This content is for informational and educational purposes only. This is not a recommendation regarding any investment or investment strategy. Any opinions expressed herein are those of the author and do not represent the views or opinions of TradeStation or any of its affiliates.
Investing involves risks. Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options, futures, or digital assets); therefore, you should not invest or risk money that you cannot afford to lose. Before trading any asset class, first read the relevant risk disclosure statements on the Important Documents page, found here: www.tradestation.com/important-information.