jangseohee

TSLA, watch out for the neck line

NASDAQ:TSLA   TESLA INC
523 21 4
Few days ago, i just learn from a trader friend that this is not a Classical H&S because there shouldn't be anything on the left. Hence i call this as Pseudo H&S

Nevertheless, price wants to break the neckline but was rejected twice within a span of 3 trading days as can be seen from the wicked.

A close below 50ema would be an evening star rejection which would translate into a short for me.

P.S.: Always take note of potential false break out to test the slanting resistance, break the resistance to fill some gaps.
Happy Holidays my friend! Love your post!
Reply
jangseohee lmsmith
Merry X'mas & Happy New Year 2015 to you and families, Smith! :-)
Reply
play4trade jangseohee
Check out the bigger neckline dating back to 5/2013... That's what we are going to test around 240ish(maybe 254 as overshoot), then down to 158 which is where the move began and left untested.
Reply
jangseohee play4trade
Good observation, but i don think it is a neck line rather an uptrend line :-)
thanks for that, long term view is better.. u
snapshot
Reply
play4trade jangseohee
snapshot
Reply
play4trade jangseohee
snapshot
Reply
jangseohee play4trade
i will be vary of the resistance at 245 as it coincide with the downtrend resistance line as well
+1 Reply
play4trade jangseohee
Like Ms. Smith pointed out, the uglier the H&S, the more likely it is to play out because it take more to notice it... I wonder where she learned that from ;-)
Reply
jangseohee play4trade
a H&S is a H&S, as long as i can find LS, H & RS though might not be a perfect symmetrical one, we will ask Smith (Mr/Ms) when he is back in Jan 2015 :-)
Reply
play4trade jangseohee
Sounds good.
Reply