Monday, 31 July 2017

TSLA - big bear flag in longville

Whilst the main market settled moderately mixed, there was very significant weakness in Tesla (TSLA) which opened higher to $341.49, but then swung powerfully lower, settling -3.5% at $323.47. Near term outlook offers further sig' weakness to at least the psy' level of $300.

TSLA daily

TSLA ,monthly


*first, note last Friday's black-fail doji candle, warning of trouble.

Bear flags don't come much cleaner, and today's decline has already provisionally confirmed it.

The main market looks set for sp'2435, and in theory, TSLA should at least fall to around the psy' level of $300. The 200dma - soon in the $270s, is a valid secondary target, based on the size of the flag, and the break of core rising trend seen July 5th.

Note the daily MACD (blue bar histogram) cycle, which is set for a bearish cross at the Tuesday open. This is the bears big opportunity to smash the stock lower. The next day or two should be rather 'interesting'.

Its probably time to message Elon again about 'trouble in longville'.

*earnings are due this Wednesday, Aug'2nd, in AH.