Looking at this Tesla Chart there is currently Nothing Positive that I can see even though the Long Term Trend is an Upper Channel. Within that channel Tesla continues to follow along the bottom of a shorter term Pennant Pattern and may be primed to Break Down Further with Bearish Signals all over as indicated, including a Bearish Divergence on the MFI, a Bearish Cross on the TSI, Trending Below the 50 day EMA, Trending below the 7 day EMA, and the 200 day EMA is the only support at $228.49 if TSLA closes below the Lower Trendline of the Upper Channel that is my near term expectation. Tesla could still swing 12% higher but I fully expect $228.49 to be hit within the next 2-3 weeks. That will be the next point to reassess further about taking a new Long term position. Till then I will wait and watch.
Comment:
Continuing to show a more extensive view of the Tesla Chart. The price candles are now trending 11 days in a row below the 50 day ema and 7 days in a row below the 7 day ema. The Negative Divergence on the Money Flow Index has formed over the past 13 trading days while the price has trended in a Neutral range for the last 8 days as seen in the light blue rectangular box. Other Bearish signals remain as previously discussed as well as potential trading ranges within the chart patterns that are visible. By Next Monday or sooner Tesla will either breakdown back to $239.00 and then possibly move lower to $230.00 (at the new 200 day ema level) or with any Bullish news and typical Bullish Investor Sentiment that Tesla has been prone to can still swing back up to $268.00 but for now the overall trend remains Bearish.
Comment:
Following through with this idea Tesla has continued to trend within this pattern now for several weeks with price swings up to 15% however I still feel the overlyinmg potential for a breakdown is greater that a rise in price back up to $300.00
Comment:
Well the Bears are in full control and though most may think the worst is over all signals remain bearish including the MFI and a worsening TSI with both a Bearish Signal Line Cross and Oscillator Cross to negative territory. As well the price is now trending 6 days below the 7day ema, There was a new Bearish MA Cross form this morning, and the MACD Strategy had already shown us a negative value on Tuesday. I've indicated a new Potential LOW Support Zone around $200.00 and though it may take a while to hit there, that is what I am looking to as a potential entry point at the moment. Of course Tesla can also move up on mediocre news but the current price is more appropriate to bring their Price to Sales Ratio more in alignment with other High Beta Stocks.
