TESLA loves its head&shoulders patterns!
As you can see, most of TSLAs price jumps to either side were accompanied by either an inverted or a classic Head and Shoulders pattern. Currently, after bad news from Mr. Musk himself about cutting jobs and facing a "tough time" for Tesla, the stock is on its way to complete the right shoulder a huge H&S pattern, which might even lead the price below the channel it has been trading in since January 17.
I personally think that a fall below the channel is not a necessity, even though the size of the head points to it. I however believe it is a possibility that Q4 earnings will not live up to analysts expectations and TSLA will once more test the bottom of the channel. Short sellers, who obviously love the stock, will add to the negative momentum.
To be clear - I like the brand and think it will prevail longterm, but high volatility will be part of the journey.
Safe trading!
I personally think that a fall below the channel is not a necessity, even though the size of the head points to it. I however believe it is a possibility that Q4 earnings will not live up to analysts expectations and TSLA will once more test the bottom of the channel. Short sellers, who obviously love the stock, will add to the negative momentum.
To be clear - I like the brand and think it will prevail longterm, but high volatility will be part of the journey.
Safe trading!
Note
Touched the neckline today, so far this idea is playing out well and TSLA once again proves its feelings towards H&S patterns =)
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.