A massive butterfly pattern completed at the start of the month. These patterns are more likely to happen at the end of a strong trend, which TSLA had enjoyed. It traded sideways in an evertighter wedge, from which it was virtually garanteed to break to the low side. It actually made a tripple top(!) on the 8th, 9th and 12th, the moves towards the resistance level becoming progressively weaker.
Going short on friday would have been the optimal move. I expect TSLA to go down to at least 247, with 221 being another rather likely target.
Going short on friday would have been the optimal move. I expect TSLA to go down to at least 247, with 221 being another rather likely target.