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Tesla Could Be Going into Distribution

BATS:TSLA   Tesla
Tesla has been one of the biggest growth stories in recent history. But now it may be going into distribution.

The first pattern on today’s chart is the bearish outside candle on December 28. The reversal pattern marked a lower high compared with mid-October.

It also began a stretch with prices falling in eight of nine sessions.

The decline left TSLA at its lowest level in almost two months. (The broader S&P 500, in contrast, is near its highest level in almost two years.)

The EV maker is now under its 200-day simple moving average (SMA). That places the stock among only 27 percent of S&P 500 members under their 200-day SMAs, according to TradeStation data.

Traders may eye the October low around $194 as the next likely support.


The weekly chart above also shows a potential downtrend over the longer term.

Finally, the fundamental news has been less positive lately. Car-rental chain HTZ Hertz Global announced plans to shed one-third of its EV fleet. TSLA was also forced to lower estimated vehicle ranges after customer complaints.

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