• TSLA hit our target at $110, as we discussed in our previous analysis, last week (link below this post, as usual); • Today, it seems we have some reaction, which is expected. It is very rare to see TSLA dropping 7 days in a row (actual drops, not only bear candlesticks). To be honest, I don’t recall seeing 7 drops in a row on TSLA. If this ever occurred, must be a long time ago; • If TSLA confirms this reaction, any bounce on TSLA would have to face the next resistance at $126. In addition, any bounce would be just a Dead Cat Bounce, as there’s no clear bullish reversal structure on TSLA – it is still doing lower highs/lows. Meaning, a top sign under a resistance would be just an opportunity to sell; • In addition to the $126, we see the red trend line connecting the previous top levels, which is another resistance, along with the 21 ema; • What if TSLA loses this support at $110? The next technical support is the $91. • Let’s pay attention to this reaction and see where it can take us. I’ll keep you updated on this, as usual.
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I thought it dropped for a week last October but thanks for sharing! It needs to hold at 110 but I'm ready to buy some at 105. There's a new open gap (117-123) now for a rally to fill.
Nathan_Black
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@CowabungaDad, That's correct. It seems it wants to go up in the pre market, maybe it can fill our gap today. In October we see many bearish candlesticks in a row, but on Oct 4 it went up, despite the black candle!