TSLA - headed considerably lower

Whilst the main US equity indexes closed mixed, TSLA opened sharply lower - despite 'reasonable earnings', with an intraday low of $146.44, and settling -$26 (-14.8%) @ $150.70. Near term trend looks extremely weak, with likely downside to the $110/100 zone..certainly before year end.


TSLA, daily

Summary

The TSLA reaction to earnings has been very much like fellow momo stocks - NFLX and FB.

The Q3 earnings were unquestionably 'reasonable'..and I do understand why some TSLA bulls are bemused at today's price collapse.

Yet...the price action in recent days has been rather classic.

A break of the broader channel
A back test of the broken channel.
A break of the initial spike-floor of $153.

Absolute text book example...and I have to think TSLA will continue to go 'by the book'...and fall to the 200 day MA...which will be lurking in the 110/100 zone for the remainder of this year.
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I'm certainly not saying that TSLA is in corporate trouble, but the stock is due a major retracement after the huge ramp from the $30s - which was a mere 7 months ago.

A drop to the big $100 psy level would be a very natural retracement.