TSLA failed in its bounce, as momentum becomes increasingly bearish.
The short-term bearish momentum has taken prices to the medium-term uptrend line, which goes back many months. I have marked that trendline with a Flag.
TSLA needs to hold this support zone to avoid a bearish breakdown. One could also wait for TSLA to close above the top of the pattern (the upper Flag level) before taking any long position, if one is more inclined to breakout trading.
As always, risk management is everything when trading a crazy stock such as TSLA.
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For the title of this post, I meant to say that TSLA is approaching a support zone, not a resistance zone.
I'm sure you get the idea.
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TSLA is up 7% in 90 minutes since I posted this idea.
Waiting for the key levels usually pays off nicely.
Patience and Discipline: that's what creates enduring success in trading.
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Took profit on TSLA at the opening bell near 688 for a +16.4% swing in just over two days.