Here's a setup of a TSLA short that I've initiated on Friday. Looking at the lines, it has struggled to breakout of the 38.2% line after it's initial denial at the 23.6% line. Recently, there has been a breakout from the 38.2% region due to a strong market, despite negative Tesla stories as of late. Similarly, price has had difficulty breaking above the 200sma, which it broke just as of late. However, the main , top one in blue, is acting as strong resistance. Tesla closed once again at the 38.2% line, looking to make a reversal here and head back to low 200s. Unless there is a breakout of the top , I expect another leg down push, hopefully into the low 200s/high 100s region.
This is a purely technical-based short setup but is very influenced by Tesla news. Musk has yet to release his master plan which he had mentioned this past week. Any evidence of a breakout of the blue line would be a good place to cover a short position.