It seems pretty clear based on valuation standards that many tech companies are significantly overbought. Over the past two weeks there has been significant capital outflow from the technology sector while there has simultaneously been large capital inflow into commodity markets, especially oil and natural gas.
Head and shoulders pattern forming on the 2hr and 4hr charts. Looks like a great short set up to return to the longer-term price trend.
I'm not a TSLA hater, I like Elon Musk, but I think this is a great short set up. Just an idea, do your own research!
Order cancelled
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Price never completed H&S and didn't enter trade channel
Trade active
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Short opened this morning
Comment
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Price movement this week will determine if I keep short open or close it.
Trade closed: stop reached
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Stock split through a wrench into the idea. Will post new chart soon!
Good call. What are your thoughts on the big downgrade today? I think this thing hits 1200 before 1800 again.
jfs2152
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@MarraM, I agree with you. I wouldn't be surprised if it hit $1000 before hitting $1800 again. I shorted at $1575 and will let the short ride unless the price reaches my entry price.
jfs2152
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@MarraM, Looks like you might be right. We'll see how this plays out in next week or so.